Key Points
- President Trump ordered a blockade of Venezuelan oil tankers, increasing pressure on the country.
- The move caused oil prices to rise, with Brent crude climbing back toward $60 a barrel.
- The U.S. dollar also strengthened on the news, while energy stocks like BP and Shell rallied.
- Warner Bros. rejected a takeover bid from Paramount, choosing to stick with its planned deal with Netflix.
Oil prices jumped, and the U.S. dollar strengthened on Wednesday after President Donald Trump escalated his pressure campaign on Venezuela by ordering a blockade of the country’s oil tankers.
The move sent a jolt through the energy markets, with Brent crude futures, a key international benchmark, rising back toward $60 a barrel. The news was a boon for major energy companies, as shares of BP and Shell rallied on the prospect of tighter global oil supplies.
In the U.S. stock market, major indexes edged higher in early trading. In corporate news, the battle for a Hollywood giant took a new turn. Warner Bros. Discovery officially rejected a hostile takeover bid from Paramount, citing its existing deal with Netflix as a better option.
The decision sent shares of both Warner Bros. and Paramount lower, while Netflix’s stock gained.
In the currency markets, the dollar gained ground against a basket of currencies amid geopolitical uncertainty. The British pound, however, fell after new data showed that UK inflation had slowed to an eight-month low. This report makes it almost certain that the Bank of England will cut interest rates on Thursday, a move that typically weakens a country’s currency.
