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Former President Donald Trump has stated that Venezuela will be “handing over” around $2 billion worth of crude oil from Venezuela to the United States. This key deal would reroute cargoes originally destined for China while assisting Venezuela evade further oil production cuts.

“This Crude will be sold at its Market Price, and that money will be managed by me, as President of the United States of America, to make certain it is used to help the citizens of Venezuela and the United States!” Trump stated in an social media post.

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

Context: An Embargo and an Arrest

Venezuela currently has millions of barrels of oil loaded on tankers and in onshore tanks that it has been prevented from shipping due to a blockade enacted by the Trump administration. This campaign of pressure culminated in the removal of Nicolás Maduro, who was captured by United States troops over the weekend.

While top Venezuelan officials have called 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 strong sign that the remaining government is complying with Trump’s ultimatum to provide entry to US oil companies or risk additional military incursion.

Another Goal: Acquiring Greenland

At the same time, Trump and his team have stated they are “examining” a “variety of possibilities” 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 acquiring Greenland is a vital security interest of the United States, and it’s crucial to counter our rivals in the Arctic region,” said White House press secretary Karoline Leavitt. “The president and his team are considering a series of options to achieve this important 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 top officials of major European powers expressed opposition against Trump’s long-running desire to take over the Arctic territory.

Additional Major Updates

• Aid Money Halted: The Trump administration is freezing more than $10 billion in federal child and family aid funds to several states including California and New York. The Department of Health and Human Services (HHS) cited allegations of fraud and misuse.
• Limited Document Release: The Department of Justice has released less than 1% of the much-discussed Epstein files, a court filing has revealed. Democrats have increased criticism of the administration’s “unlawful actions” for keeping records under seal.
• ICE Surge in Minnesota: The administration has deployed more immigration agents to Minnesota, in an extension of growing pressure 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 relinquish 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 “demise” of the military alliance.
• Resources Diverted from Trafficking: Democratic senators stated in a letter that the Trump administration has ceased work to combat trafficking and cartel activity as it diverts thousands of law enforcement personnel to Immigration and Customs Enforcement (ICE).

Oil Price Movement

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

Bipartisan Opposition

The idea of military action against Greenland faced immediate cross-party pushback 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 “the right course”, and other Republican senators warned it could lead to the “demise” of NATO.

The wider diplomatic situation remains tense, with the US concurrently involved in major confrontations in South America and the North Atlantic while enacting controversial domestic policy shifts.