Oil prices climbed sharply on Wednesday after US President Donald Trump ordered a blockade on Venezuelan tankers, raising concerns about potential disruptions in the country’s crude exports.

US West Texas Intermediate (WTI) crude rose 2.44% to $56.62 per barrel, while Brent crude gained 2.27% to $60.26 per barrel. The surge reversed earlier declines earlier in the week.

Trump called the Venezuelan government a “foreign terrorist organisation” and said the blockade targets vessels involved in alleged illegal activities, including drug trafficking and human rights abuses. He warned that the US “armada” would remain in place until Venezuela returns assets he claims belong to the United States.

Analysts say the blockade could affect a significant portion of Venezuela’s estimated 850,000 barrels per day in exports, most of which go to China. Chevron’s shipments to the US are reportedly not affected for now.

Earlier this week, oil prices had dropped below $60 amid hopes for a Russia-Ukraine peace deal and weak Chinese economic data, which showed slowing factory output and retail sales. Concerns over oversupply and global demand also weighed on the market.