The US imposed sanctions on Venezuelan officials yesterday, escalating a diplomatic crisis between leftist Latin American leaders and Washington that raises the spectre of an oil supply cut-off.
The sanctions and Venezuelan President Hugo Chavez's threat to stop crude sales to the US plunged ties between the superpower and one of its top energy suppliers to the lowest point in years.
Mr Chavez, who calls Cuba's Fidel Castro a mentor and sees Russia as a counterbalance to US power, had warned on Thursday that world crude prices would immediately double to above $200 a barrel if he cuts oil to the US.
The clash was part of a long-brewing conflict between the US and Latin America's bloc of left-wing leaders antagonistic to traditional US dominance in the region.
Tensions were already high after Mr Chavez allowed two Russian long-range bombers to land in Venezuela and took Moscow's side in disputes over Georgia and US plans for a missile shield in eastern Europe.
This week's crisis began when Bolivia expelled its US ambassador, accusing him of fuelling protests against leftist President Evo Morales, a close ally of Mr Chavez.
In an expletive-laden tirade against "Yankees", Mr Chavez ejected the US ambassador to Venezuela on Thursday and Honduras weighed in yesterday, blocking a US envoy from immediately taking up his post as ambassador.
State Department spokesman Sean McCormack denied the US had done anything wrong in the countries and said: "This reflects the weakness and desperation of these leaders as they face internal challenges."
Washington said yesterday it was expelling the Venezuelan ambassador and imposed sanctions on Mr Chavez's aides, including Venezuela's ex-Interior Minister Ramon Rodriguez, for allegedly aiding rebels in Colombia.
It is unclear whether Mr Chavez knew in advance that US sanctions were coming against his officials, but Mr Rodriguez resigned unexpectedly last weekend. The Venezuelan leader, an ex-soldier trained in a tank division, often uses a strategy that his best form of defence is attack.
Mr Chavez was briefly ousted in a 2002 coup initially welcomed by Washington. Even at that time, Mr Chavez did not go so far as to expel the US ambassador and has been a reliable oil supplier.