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Ex-President Donald Trump has declared that Venezuela will be “turning over” around $2 billion worth of Venezuelan crude to the United States. This major agreement would divert supplies originally destined for China while potentially helping Venezuela sidestep further oil production cuts.

“This Crude will be sold at its current market value, and that revenue will be overseen by me, as the President of the United States of America, to ensure it is used to benefit the citizens of Venezuela and the United States!” Trump proclaimed in an social media post.

Authorities in Venezuela and the state company PDVSA did not provide comment on the supposed agreement.

The Situation: An Embargo and an Arrest

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 ordered by the Trump administration. This pressure campaign ended with the removal of Nicolás Maduro, who was captured by United States troops over the recent weekend.

While top Venezuelan officials have described Maduro’s capture a illegal seizure and accused the US of trying to steal the country’s enormous oil reserves, Tuesday’s declaration is seen as a clear indicator that the remaining government is complying with Trump’s requirement to provide entry to US oil companies or risk more military intervention.

A Separate Agenda: Acquiring 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 presidential statement on Tuesday noted that using the US military to do so is “always an option”.

“President Trump has made it abundantly clear that obtaining 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 discussing a range of options to pursue this critical foreign policy goal, and of course, using the US military is always an option at the commander-in-chief’s command.”

Leavitt’s comments came as the leaders of leading European powers pushed back against Trump’s longstanding desire to annex the Arctic territory.

Further Significant Events

• 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 issues regarding 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 shown. Democrats have escalated criticism of the administration’s “disregard for the law” for keeping records under seal.
• ICE Surge in Minnesota: The administration has dispatched more immigration agents to Minnesota, continuing growing pressure 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 “dreams of taking over” 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 “end” 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).

Financial Impact

The implications of the US intervention in Venezuela sent ripples through the markets. The price of oil declined after Trump’s announcement, with traders anticipating more supply becoming available. West Texas Intermediate fell by over 1.5%, while the international benchmark, Brent crude, also decreased.

Bipartisan Opposition

The idea of an invasion against Greenland encountered swift bipartisan criticism from US legislators. Democratic 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 “end” of NATO.

The international geopolitical situation remains fraught, with the US simultaneously involved in major standoffs in South America and the Arctic while enacting divisive domestic policy shifts.