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Ex-President Donald Trump has stated that Venezuela will be “turning over” an estimated $2 billion worth of Venezuelan oil to the United States of America. This flagship negotiation would reroute cargoes originally bound for China while potentially helping Venezuela avoid further oil production cuts.

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

Venezuelan government officials and the state company PDVSA have not commented on the alleged agreement.

Background: A Blockade and a Capture

Venezuela currently has millions of barrels of oil aboard tankers and in storage tanks that it has been blocked from exporting due to a embargo enacted by the Trump administration. This pressure campaign culminated in the ouster of Nicolás Maduro, who was apprehended by American military forces over the past weekend.

While top Venezuelan officials have called Maduro’s capture a kidnapping and accused the US of attempting to seize the country’s vast oil reserves, Tuesday’s declaration is seen as a strong sign that the current government is responding to Trump’s ultimatum to provide entry to US oil companies or be threatened with more military intervention.

Parallel Ambitions: The Quest for Greenland

At the same time, Trump and his advisers have stated they are “examining” a “variety of possibilities” in an attempt to take control of Greenland. A presidential statement on Tuesday noted that using the US military to do so is “remains a possibility”.

“President Trump has made it perfectly clear that acquiring Greenland is a vital security interest of the United States, and it’s vital to thwart our rivals in the Arctic region,” said White House press secretary Karoline Leavitt. “The president and his team are evaluating a series of options to accomplish this significant foreign policy goal, and of course, using the US military is one available path at the commander-in-chief’s disposal.”

Leavitt’s comments came as the heads of state of major European powers pushed back against Trump’s persistent desire to annex the Arctic territory.

Additional Major Updates

• Family Assistance Blocked: The Trump administration is withholding more than $10 billion in federal childcare and family assistance funds to several states including California 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 a minuscule portion of the much-discussed Epstein files, a court filing has disclosed. Democrats have increased criticism of the administration’s “unlawful actions” for sealing the files.
• Immigration Crackdown in Minnesota: The administration has sent more immigration agents to Minnesota, part of increasing rhetoric against the state and its immigrant populations. Immigration officials called it the agency’s “largest operation to date”.
• PM’s Strong Rebuke: Greenland’s Prime Minister, Jens-Frederik Nielsen, urged Trump to give up his “fantasies about annexation” Greenland and accused the US of “entirely unacceptable” 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 alleged in a letter that the Trump administration has abandoned efforts to combat trafficking and cartel activity as it redirects thousands of law enforcement personnel to Immigration and Customs Enforcement (ICE).

Financial Impact

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

Criticism from Lawmakers

The idea of using the military against Greenland encountered significant bipartisan opposition 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 “collapse” of NATO.

The wider diplomatic context remains tense, with the US at once engaging in significant standoffs in Venezuela and the North Atlantic while implementing contentious domestic policy shifts.