Venezuela’s economy nears collapse under US blockade

Caracas: After seizing Venezuelan President Nicol s Maduro, the Trump administration is increasing the already substantial pressure on the country s n...

Caracas: After seizing Venezuelan President Nicolás Maduro, the Trump administration is increasing the already substantial pressure on the country’s new president, Delcy Rodríguez, demanding she cut ties with US adversaries before a blockade on Venezuelan oil is lifted.

The economic pressure campaign has emerged as central to President Donald Trump’s vow that the United States would "run” Venezuela. In an apparent indication of early compliance, Rodríguez’s government agreed to a deal under which Venezuela would hand millions of barrels of oil over to the US.

Inside Venezuela, a nervous quiet has descended on many parts of the capital as people grapple with the aftermath of the US attack and a widening government crackdown against dissent. For now, Caracas residents report no shortages of goods in markets, but inflation is up, normally busy streets are empty and the businesses that do open only do so for set periods of time.

Under the current conditions, Trump administration officials say the Venezuelan government only has a few weeks before it would "go broke” if it doesn’t "play ball,” according to two US officials briefed on the matter, who spoke on the condition of anonymity to discuss internal policy deliberations.

Analysts and economists said that timeline probably describes how long the US assesses that the government in Caracas has before its cash reserves run out and it is left unable to make critical payments, such as salaries for security forces.