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Former President Donald Trump has declared that Venezuela will be “handing over” approximately $2 billion worth of Venezuelan crude to the US. This major agreement would divert supplies originally headed to China while allowing Venezuela sidestep deeper oil production cuts.

“This Petroleum will be sold at its prevailing market price, and that money will be controlled by me, as the President of the United States of America, to ensure it is used to help the people of Venezuela and the United States!” Trump stated in an online post.

Authorities in Venezuela and the state company PDVSA have not commented on the alleged agreement.

Background: An Embargo and an Arrest

Venezuela currently has vast quantities of oil loaded on tankers and in storage tanks that it has been unable to ship due to a embargo ordered by the Trump administration. This pressure campaign ended with the ouster of Nicolás Maduro, who was captured by United States troops over the past weekend.

While top Venezuelan officials have described Maduro’s capture a kidnapping and charged the US of trying to steal the country’s enormous oil reserves, Tuesday’s statement is seen as a clear indicator that the interim government is complying with Trump’s ultimatum to provide entry to US oil companies or be threatened with additional military intervention.

A Separate Agenda: Acquiring Greenland

Simultaneously, Trump and his team have stated they are “looking into” a “range of options” in an effort to acquire Greenland. A presidential statement on Tuesday noted that using the US military to do so is “remains a possibility”.

“President Trump has made it well known that securing Greenland is a key national security objective of the United States, and it’s vital to thwart our rivals in the Arctic region,” said White House press secretary Karoline Leavitt. “The president and his team are evaluating a set of options to achieve this significant foreign policy goal, and of course, using the US military is a constant possibility at the commander-in-chief’s command.”

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

Further Significant Events

• Aid Money Halted: The Trump administration is blocking 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.
• Limited Document Release: The Department of Justice has released less than 1% of the much-discussed Epstein files, a court filing has disclosed. Democrats have stepped up criticism of the administration’s “lawlessness” for keeping records under seal.
• ICE Surge in 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 “largest operation to date”.
• PM’s Strong Rebuke: Greenland’s Prime Minister, Jens-Frederik Nielsen, urged Trump to give up his “notions of seizing” 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 claimed in a letter that the Trump administration has stopped trying to combat exploitation and trafficking as it diverts thousands of law enforcement personnel to Immigration and Customs Enforcement (ICE).

Financial Impact

The fallout of the US intervention in Venezuela sent ripples through global markets. The price of oil dropped after Trump’s announcement, with traders expecting more supply hitting the market. West Texas Intermediate fell by 1.6%, while the international benchmark, Brent crude, also dropped.

Criticism from Lawmakers

The idea of military action against Greenland encountered significant cross-party opposition 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 “end” of NATO.

The international geopolitical situation remains tense, with the US simultaneously involved in significant confrontations in Venezuela and the North Atlantic while carrying out controversial domestic policy shifts.