🔗 Share this article

President Donald Trump has stated that Venezuela will be “handing over” approximately $2 billion worth of crude oil from Venezuela to the US. This major agreement would reroute cargoes originally bound for China while potentially helping Venezuela sidestep deeper oil production cuts.

“This Crude will be sold at its Market Price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the population of Venezuela and the United States!” Trump wrote in an social media post.

Officials in Caracas and the state-owned firm PDVSA have not commented on the supposed agreement.

Context: A Blockade and a Capture

Venezuela currently has millions of barrels of oil aboard tankers and held in storage that it has been unable to ship due to a blockade ordered by the Trump administration. This pressure campaign ended with the toppling of Nicolás Maduro, who was captured by US forces over the weekend.

While high-ranking Venezuelan officials have labeled Maduro’s capture a illegal seizure and charged the US of attempting to seize the country’s immense oil reserves, Tuesday’s declaration is seen as a powerful signal that the current government is responding to Trump’s ultimatum to grant access to US oil companies or face the risk of more military action.

A Separate Agenda: The Quest for Greenland

At the same time, Trump and his aides have stated they are “looking into” a “variety of possibilities” in an bid to take control of Greenland. A White House statement on Tuesday noted that using the US military to do so is “remains a possibility”.

“President Trump has made it well known that obtaining Greenland is a vital security interest of the United States, and it’s essential to counter our adversaries in the Arctic region,” said White House press secretary Karoline Leavitt. “The president and his team are discussing a series of options to achieve this important foreign policy goal, and of course, using the US military is a constant possibility at the commander-in-chief’s command.”

Leavitt’s comments came as the heads of state of leading European powers expressed opposition against Trump’s long-running desire to seize the Arctic territory.

Additional Major Updates

• Family Assistance Blocked: The Trump administration is blocking more than $10 billion in federal childcare and family assistance funds to five major states. The Department of Health and Human Services (HHS) cited issues regarding fraud and misuse.
• Epstein Files Withheld: The Department of Justice has released less than 1% of the so-called Epstein files, a court filing has revealed. Democrats have increased criticism of the administration’s “unlawful actions” for withholding the documents.
• Immigration Crackdown in Minnesota: The administration has dispatched more immigration agents to Minnesota, part of increasing rhetoric against the state and its immigrant populations. Immigration officials called it the agency’s “most significant crackdown so far”.
• Clear Opposition from Greenland: Greenland’s Prime Minister, Jens-Frederik Nielsen, urged Trump to abandon his “dreams of taking over” Greenland and accused the US of “completely and utterly unacceptable” rhetoric. The Prime Minister of Denmark, Mette Frederiksen, previously warned that a US attack on a NATO ally would mean the “demise” of the military alliance.
• Resources Diverted from Trafficking: Democratic senators claimed in a letter that the Trump administration has abandoned efforts to combat exploitation and trafficking as it diverts thousands of law enforcement personnel to Immigration and Customs Enforcement (ICE).

Oil Price Movement

The aftermath of the US intervention in Venezuela sent tremors through the markets. The price of oil declined after Trump’s announcement, with traders bracing for more supply hitting the market. West Texas Intermediate fell by more than 1.5 percent, while the international benchmark, Brent crude, also dropped.

Political Backlash

The idea of an invasion against Greenland encountered swift bipartisan pushback from US legislators. Democrat Senator Ruben Gallego vowed to introduce a resolution to block such a move. Republican House Speaker Mike Johnson said he did not think military action was “appropriate”, and other Republican senators warned it could lead to the “demise” of NATO.

The wider diplomatic situation remains fraught, with the US concurrently pursuing major standoffs in Venezuela and the North Atlantic while implementing divisive domestic policy shifts.