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

“This Petroleum will be sold at its Market Price, and that revenue will be managed by me, as President of the United States of America, to guarantee it is used to help the people of Venezuela and the United States!” Trump wrote in an digital statement.

Officials in Caracas and the national oil company PDVSA did not provide comment on the reported agreement.

Background: A Blockade and a Capture

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

While high-ranking Venezuelan officials have described Maduro’s capture a illegal seizure and accused 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 complying with Trump’s requirement to open up to US oil companies or face the risk of further military intervention.

A Separate Agenda: The Pursuit of Greenland

Simultaneously, Trump and his aides have stated they are “examining” a “range of options” in an effort to take control of 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 abundantly clear that acquiring 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 discussing a set of options to achieve 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 heads of state of key European powers pushed back against Trump’s persistent desire to seize the Arctic territory.

Further Significant Events

• Childcare Funds Frozen: The Trump administration is blocking more than $10 billion in federal childcare and family support funds to California, Colorado, Illinois, Minnesota, and New York. The Department of Health and Human Services (HHS) cited concerns about fraud and misuse.
• Limited Document Release: The Department of Justice has released a tiny fraction of the so-called Epstein files, a court filing has revealed. 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, continuing escalating attacks against the state and its immigrant populations. Immigration officials called it the agency’s “most significant crackdown so far”.
• Clear Opposition from Greenland: Greenland’s Prime Minister, Jens-Frederik Nielsen, urged Trump to abandon his “dreams of taking over” 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 stopped trying to combat exploitation and trafficking as it reassigns thousands of law enforcement personnel to Immigration and Customs Enforcement (ICE).

Oil Price Movement

The aftermath of the US intervention in Venezuela sent shockwaves through financial markets. The price of oil declined after Trump’s announcement, with traders anticipating more supply entering the market. US crude fell by 1.6%, while the international benchmark, Brent crude, also dropped.

Political Backlash

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 “demise” of NATO.

The wider diplomatic context remains fraught, with the US concurrently pursuing major standoffs in Venezuela and the North Atlantic while implementing controversial domestic policy shifts.