US sanctions Venezuela over terrorism - official

WASHINGTON, May 15 (Reuters) The United States today imposed sanctions on Venezuela, banning all arms sales to a major oil supplier for what it believes is a lack of help in Washington's war on terrorism, a State Department official said.

The move plummets the two nations' ties to their worst level in decades and comes after years of antagonism between leftist Venezuelan President Hugo Chavez and Washington on issues ranging from trade to oil prices.

The United States is concerned about Chavez's friendly relationship with Cuba and Iran, two countries it says sponsor terrorism, and his failure to stop Colombian leftist guerrillas using Venezuelan territory, the US official said.

Venezuela has warned for months the United States would move against it over terrorism but says it cooperates with Colombia against guerrillas and denies its ties with countries that are US foes mean that it helps militants.

REUTERS SY BD2304