Despite US threats of "strong and swift economic sanctions" that the WSJ reported overnight could cut off a crucial source of revenue for Venezuela's financially distressed state oil company, PDVSA, the socialist state's leader Nicolas Maduro is claiming victory in a vote to create a new "constituent assembly," a vote that US government officials have labeled a "sham."

The ruling Socialist party's candidates purportedly won all 545 seats in the vote. Venezuela electoral council head Tibisay Lucena said more than 41% of the country's registered voters participated, a number that is being widely discreditr by outside sources. Per press reports, the assembly will now replace the opposition controlled Congress, which was annulled by the Maduro-allied Supreme Court in March, allowing Maduro to rewrite the country's constitution, cementing his hold on power as his favorability rating with the public falls below 30%.

The U.S., Colombia, Spain, Peru, the EU and Argentina have already said they will not recognize the results of the vote, which was boycotted by the country's opposition parties.