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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“Today, the United States of America, in coordination with the Interim Authorities of Venezuela, seized an oil tanker which departed Venezuela without our approval. This tanker is now on its way back to Venezuela, and the oil will be sold through the GREAT Energy Deal, which we have created for such sales. Thank you for your attention to this matter!”
How Will Trump’s Statement Affect the Stock Market?
This latest post has the potential to affect the stock market. That’s because Trump’s statement about seizing a Venezuela-linked oil tanker could fuel expectations of tighter global oil supply, potentially boosting prices and benefiting major U.S. producers like Chevron, ConocoPhillips, and Exxon Mobil, as well as oilfield and energy ETFs such as XLE, OIH, and VDE. Higher oil prices and increased geopolitical risk may lift tanker rates, which could support shipping companies like Frontline, Scorpio Tankers, and Teekay Tankers. However, heightened trade and geopolitical tensions may weigh on broader industrial sentiment, creating mixed to slightly negative implications for industrial-focused ETFs such as VIS, XLI, and IYJ due to concerns about global growth and logistics disruptions.
Here are some of the stocks that might be affected:
Chevron ((CVX)),
Conocophillips ((COP)),
Exxon Mobil Corp. ((XOM)),
Frontline ((FRO)),
Scorpio Tankers ((STNG)),
Teekay Tankers ((TNK)),
Vanguard Industrials ETF ((VIS)),
Industrial Select Sector SPDR Fund ((XLI)),
Energy Select Sector SPDR Fund ((XLE)),
VanEck Oil Services ETF ((OIH)),
Vanguard Energy ETF ((VDE)),
iShares U.S. Industrials ETF ((IYJ)).