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Ex-President Donald Trump has announced that the Venezuelan government will be “turning over” around $2 billion worth of Venezuelan crude to the United States. This key deal would divert supplies originally bound for China while allowing Venezuela sidestep deeper oil production cuts.

“This Petroleum will be sold at its current market value, 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 wrote in an online post.

Venezuelan government officials and the national oil company PDVSA did not provide comment on the supposed agreement.

Background: A Blockade and a Capture

Venezuela currently has millions of barrels of oil aboard tankers and in storage tanks that it has been unable to ship due to a naval blockade ordered by the Trump administration. This campaign of pressure culminated in the removal of Nicolás Maduro, who was seized by United States troops over the recent weekend.

While top Venezuelan officials have called Maduro’s capture a kidnapping and alleged the US of trying to steal the country’s enormous oil reserves, Tuesday’s declaration is seen as a clear indicator that the current government is complying with Trump’s requirement to grant access to US oil companies or face the risk of further military intervention.

Another Goal: The Quest for Greenland

Simultaneously, Trump and his team have stated they are “examining” a “spectrum of choices” in an effort to take control of 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 well known that securing Greenland is a key national security objective of the United States, and it’s vital to deter our adversaries in the Arctic region,” said White House press secretary Karoline Leavitt. “The president and his team are considering a series of options to accomplish 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 leaders of leading European powers pushed back against Trump’s long-running desire to annex the Arctic territory.

Additional Major Updates

• Aid Money Halted: The Trump administration is blocking 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 concerns about fraud and misuse.
• Epstein Files Withheld: The Department of Justice has released less than 1% of the much-discussed Epstein files, a court filing has revealed. Democrats have escalated criticism of the administration’s “disregard for the law” for sealing the files.
• Immigration Crackdown in Minnesota: The administration has dispatched more immigration agents to Minnesota, part of growing pressure against the state and its immigrant populations. Immigration officials called it the agency’s “largest operation to date”.
• Clear Opposition from Greenland: Greenland’s Prime Minister, Jens-Frederik Nielsen, urged Trump to abandon his “notions of seizing” 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 “end” of the military alliance.
• Law Enforcement Priorities Shifted: Democratic senators stated in a letter that the Trump administration has stopped trying to combat child exploitation, human trafficking, and cartels as it reassigns thousands of law enforcement personnel to Immigration and Customs Enforcement (ICE).

Market Reaction

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

Bipartisan Opposition

The idea of military action against Greenland met with significant cross-party criticism 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 “suitable”, and other Republican senators warned it could lead to the “collapse” of NATO.

The broader diplomatic landscape remains uncertain, with the US at once pursuing major confrontations in Venezuela and the North Atlantic while carrying out controversial domestic policy shifts.