Venezuela cuts relations with US after Trump recognises opposition leader
Venezuelan leader Nicolás Maduro cut ties with US after President Donald Trump recognised opposition leader Juan Guaidó as self-declared interim president.
On Wednesday Guaidó declared himself president during a series of mass protests on the Venezuelan streets. Thousands of citizens attended a rally on Wednesday in support Guaidó where he said the protests would continue until “Venezuela is liberated”.
Venezuela has suffered from hyperinflation, power cuts and shortages of food and basic items, which the government has blamed on the economic blockade of the country.
Earlier this month Maduro was sworn in for a second term after an election that was boycotted by the opposition. Last week, Venezuela's foreign minister Jorge Arreaza denounced that the US had led "a criminal economic blockade and an operation of international aggression against Venezuela".
Maduro gave US diplomats 72 hours to leave the country, following Trump's remarks.
In a statement Trump said Maduro’s presidency was "illegitimate", adding: "The people of Venezuela have courageously spoken out against Maduro and his regime and demanded freedom and the rule of law."
Trump said he was not considering military action but he doesn’t rule it out either.
Mexico, Bolivia and Cuba have expressed support for Maduro, while Russia, which has supported Venezuela’s oil industry and armed forces, said it would protect the country’s sovereignty. Turkey also offered support.
Guaidó was recognised as president by seven right-leaning South American nations, Brazil, Colombia, Chile, Peru, Ecuador, Argentina and Paraguay. Canada is also said it supported him, while the EU called for new elections.
The break in US-Venezuela diplomatic relations raises concerns that The White House could expand sanctions to energy trade.
Venezuelan bond yields declined on the outlook for a regime shift and the consequences of the conflict could hit broader oil market.