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Former President Donald Trump has declared that Venezuela will be “handing over” around $2 billion worth of Venezuelan crude to the United States. This flagship negotiation would divert supplies originally headed to China while assisting Venezuela evade further oil production cuts.

“This Petroleum will be sold at its current market value, and that money will be managed by me, as the President of the United States of America, to guarantee it is used to assist the citizens of Venezuela and the United States!” Trump wrote in an social media post.

Authorities in Venezuela and the state-owned firm PDVSA have not commented on the supposed agreement.

Background: A Blockade and a Capture

Venezuela currently has huge volumes of oil loaded on tankers and in storage tanks that it has been prevented from shipping due to a embargo ordered by the Trump administration. This campaign of pressure reached its peak with the toppling of Nicolás Maduro, who was captured by United States troops over the weekend.

While senior Venezuelan officials have labeled Maduro’s capture a abduction and alleged the US of trying to steal the country’s enormous oil reserves, Tuesday’s declaration is seen as a strong sign that the current government is bowing to Trump’s demand to grant access to US oil companies or risk further military action.

Parallel Ambitions: Acquiring Greenland

Meanwhile, Trump and his advisers have stated they are “exploring” a “range of options” in an attempt to obtain 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 perfectly clear that obtaining Greenland is a national security priority 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 considering a range of options to accomplish this important foreign policy goal, and of course, utilizing the US military is a constant possibility at the commander-in-chief’s discretion.”

Leavitt’s comments came as the heads of state of major European powers voiced resistance against Trump’s longstanding desire to seize the Arctic territory.

Further Significant Events

• Family Assistance Blocked: The Trump administration is blocking more than $10 billion in federal childcare and family support funds to five major states. The Department of Health and Human Services (HHS) cited issues regarding fraud and misuse.
• Limited Document Release: The Department of Justice has released less than 1% of the so-called Epstein files, a court filing has revealed. Democrats have escalated criticism of the administration’s “disregard for the law” for keeping records under seal.
• ICE Surge in Minnesota: The administration has sent more immigration agents to Minnesota, continuing escalating attacks against the state and its immigrant populations. Immigration officials called it the agency’s “most significant crackdown so far”.
• PM’s Strong Rebuke: Greenland’s Prime Minister, Jens-Frederik Nielsen, urged Trump to abandon 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.
• Law Enforcement Priorities Shifted: Democratic senators alleged in a letter that the Trump administration has stopped trying to combat trafficking and cartel activity as it redirects thousands of law enforcement personnel to Immigration and Customs Enforcement (ICE).

Financial Impact

The fallout of the US intervention in Venezuela sent tremors through financial markets. The price of oil dropped after Trump’s announcement, with traders bracing for more supply entering the market. US crude fell by more than 1.5 percent, while the international benchmark, Brent crude, also decreased.

Bipartisan Opposition

The idea of military action against Greenland faced swift cross-party criticism 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 “end” of NATO.

The broader diplomatic situation remains fraught, with the US concurrently involved in high-stakes standoffs in Venezuela and the North Atlantic while implementing contentious domestic policy shifts.