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Ex-President Donald Trump has declared that the Venezuelan government will be “turning over” approximately $2 billion worth of Venezuelan crude to the United States of America. This major agreement would reroute cargoes originally bound for China while allowing Venezuela avoid further oil production cuts.

“This Oil will be sold at its Market Price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to assist the people of Venezuela and the United States!” Trump wrote in an digital statement.

Authorities in Venezuela and the state-owned firm PDVSA offered no response on the alleged agreement.

Background: A Blockade and a Capture

Venezuela currently has millions of barrels of oil aboard tankers and held in storage that it has been prevented from shipping due to a blockade enacted by the Trump administration. This pressure campaign reached its peak with the ouster of Nicolás Maduro, who was seized by US forces over the weekend.

While high-ranking Venezuelan officials have labeled Maduro’s capture a kidnapping and alleged the US of trying to steal the country’s immense oil reserves, Tuesday’s declaration is seen as a strong sign that the remaining government is bowing to Trump’s requirement to grant access to US oil companies or be threatened with additional military incursion.

Another Goal: The Quest for Greenland

Meanwhile, Trump and his advisers have stated they are “looking into” 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 “on the table”.

“President Trump has made it perfectly clear that securing Greenland is a vital security interest 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 set of options to achieve this important foreign policy goal, and of course, utilizing the US military is always an option at the commander-in-chief’s discretion.”

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

Additional Major Updates

• Aid Money Halted: The Trump administration is withholding more than $10 billion in federal childcare and family support funds to several states including California and New York. The Department of Health and Human Services (HHS) cited concerns about fraud and misuse.
• Epstein Files Withheld: The Department of Justice has released a minuscule portion of the so-called Epstein files, a court filing has disclosed. Democrats have increased criticism of the administration’s “lawlessness” for sealing the files.
• Agents Deployed to Minnesota: The administration has dispatched more immigration agents to Minnesota, in an extension of escalating attacks 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 relinquish his “dreams of taking over” Greenland and accused the US of “completely and utterly 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 stopped trying to combat exploitation and trafficking as it redirects thousands of law enforcement personnel to Immigration and Customs Enforcement (ICE).

Market Reaction

The fallout of the US intervention in Venezuela sent ripples through global markets. The price of oil fell after Trump’s announcement, with traders anticipating more supply hitting the market. US crude fell by more than 1.5 percent, while the international benchmark, Brent crude, also dropped.

Bipartisan Opposition

The idea of using the military against Greenland faced immediate bipartisan criticism from US legislators. Democrat 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 “suitable”, and other Republican senators warned it could lead to the “end” of NATO.

The wider geopolitical context remains fraught, with the US concurrently pursuing major disputes in South America and the North Atlantic while carrying out divisive domestic policy shifts.