National guard troops took over Venezuelan oil distribution plants today in a government crackdown on a protracted opposition strike that has crippled oil operations in the world's fifth biggest oil exporter.
The shutdown, started on December 2nd to force leftist President Hugo Chavez to quit or call early elections, has disrupted refineries, cut oil output by half and completely stopped oil exports - the nation's economic lifeblood.
Private commercial banks joined the strike today and the Venezuelan subsidiary of Ford, said that it has closed its operations due to lack of supplies.
The strike has rattled world oil markets that are already nervous over a possible US war with Iraq. US crude oil rose 20 cents Monday to $27.13 a barrel due to disruptions in Venezuela, which supplies 15 per cent of US oil imports.
Mr Chavez, a former paratrooper elected in 1998, has refused to step down and has accused foes of trying to topple his government with a coup. He has vowed to counter the strike and says he will deploy the military to keep oil flowing.
The shutdown is the toughest challenge to Mr Chavez since he survived a short-lived coup by rebel officers in April. Seven months after the uprising, rival protests and frequent street clashes have sharply polarised the already divided South American nation. But the armed forces seem firmly on his side.
Many poorer voters say the president's policies, such as cheap credit and land reform, have addressed years of neglect by the nation's rich elites. But the opposition, backed mainly by the upper and middle classes, accuses Mr Chavez of driving Venezuela into economic ruin and social chaos.