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Former President Donald Trump has stated that Venezuela will be “turning over” approximately $2 billion worth of Venezuelan crude to the US. This key deal would divert supplies originally bound for China while allowing Venezuela evade deeper oil production cuts.

“This Oil will be sold at its current market value, and that proceeds will be controlled by me, as the President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States!” Trump stated in an online post.

Authorities in Venezuela and the national oil company PDVSA did not provide comment on the alleged agreement.

Background: A Blockade and a Capture

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

While top Venezuelan officials have called Maduro’s capture a illegal seizure and accused the US of seeking to take the country’s vast oil reserves, Tuesday’s statement is seen as a strong sign that the remaining government is bowing to Trump’s requirement to grant access to US oil companies or face the risk of additional military incursion.

Another Goal: The Quest for Greenland

Simultaneously, Trump and his team have stated they are “examining” a “spectrum of choices” in an attempt to take control of Greenland. A White House statement on Tuesday noted that using the US military to do so is “always an option”.

“President Trump has made it abundantly clear that securing Greenland is a vital security interest of the United States, and it’s vital to deter our adversaries in the Arctic region,” said White House press secretary Karoline Leavitt. “The president and his team are evaluating a set of options to accomplish this critical foreign policy goal, and of course, employing the US military is a constant possibility at the commander-in-chief’s disposal.”

Leavitt’s comments came as the leaders of key European powers pushed back against Trump’s long-running desire to take over the Arctic territory.

Additional Major Updates

• Family Assistance Blocked: The Trump administration is freezing more than $10 billion in federal childcare and family assistance funds to California, Colorado, Illinois, Minnesota, and New York. The Department of Health and Human Services (HHS) cited allegations of fraud and misuse.
• Epstein Files Withheld: The Department of Justice has released less than 1% of the much-discussed Epstein files, a court filing has disclosed. Democrats have increased criticism of the administration’s “disregard for the law” for withholding the documents.
• Immigration Crackdown in Minnesota: The administration has dispatched more immigration agents to Minnesota, continuing escalating attacks against the state and its immigrant populations. Immigration officials called it the agency’s “biggest-ever operation”.
• Clear Opposition from Greenland: Greenland’s Prime Minister, Jens-Frederik Nielsen, urged Trump to give up his “fantasies about annexation” Greenland and accused the US of “wholly inappropriate” rhetoric. The Prime Minister of Denmark, Mette Frederiksen, previously warned that a US attack on a NATO ally would mean the “collapse” of the military alliance.
• Resources Diverted from Trafficking: Democratic senators claimed in a letter that the Trump administration has ceased work to combat child exploitation, human trafficking, and cartels as it reassigns thousands of law enforcement personnel to Immigration and Customs Enforcement (ICE).

Oil Price Movement

The fallout of the US intervention in Venezuela sent tremors through the markets. The price of oil fell after Trump’s announcement, with traders expecting more supply entering 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 military action against Greenland met with significant bipartisan criticism from US legislators. Democratic Senator Ruben Gallego vowed to introduce a resolution to block such a move. GOP House Speaker Mike Johnson said he did not think military action was “appropriate”, and other Republican senators warned it could lead to the “end” of NATO.

The wider diplomatic context remains tense, with the US simultaneously pursuing significant standoffs in Venezuela and the Arctic while carrying out controversial domestic policy shifts.