Key Facts

• The U.S. seized Venezuelan oil totaling about 3.7 million barrels from two tankers.
• President Trump expressed that the U.S. intends to keep or sell the oil rather than return it.
• The oil is valued at hundreds of millions of dollars and could provide significant revenue for the U.S.
• There are three possible outcomes for the oil: selling it, allowing U.S. businesses with claims against Venezuela to claim it, or storing it in the U.S. Strategic Petroleum Reserve.
• The move could worsen relations with China, which is a major buyer of Venezuelan oil.
• One of the tankers, Centuries, was not under sanction at the time it was boarded but flew a flag of convenience from Panama.
• The U.S. accuses Centuries of flying a false flag, making the seizure legal under a treaty with Panama.
• A U.S. legal process called "asset forfeiture" might be used to allow the U.S. to keep the oil legally.