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Former President Donald Trump has announced that the Venezuelan government will be “handing over” an estimated $2 billion worth of Venezuelan oil to the United States. This flagship negotiation would divert supplies originally bound for China while potentially helping Venezuela evade further oil production cuts.

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

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

The Situation: An Embargo and an Arrest

Venezuela currently has huge volumes of oil loaded on tankers and in onshore tanks that it has been unable to ship due to a naval blockade enacted by the Trump administration. This campaign of pressure ended with the removal of Nicolás Maduro, who was apprehended by American military forces over the weekend.

While top Venezuelan officials have called Maduro’s capture a illegal seizure and alleged the US of trying to steal the country’s vast oil reserves, Tuesday’s declaration is seen as a strong sign that the remaining government is complying with Trump’s demand to provide entry to US oil companies or risk additional military intervention.

Another Goal: The Quest for Greenland

Meanwhile, Trump and his team have stated they are “looking into” a “range of options” in an effort 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 thwart our rivals in the Arctic region,” said White House press secretary Karoline Leavitt. “The president and his team are considering a range of options to pursue this significant foreign policy goal, and of course, employing the US military is a constant possibility at the commander-in-chief’s disposal.”

Leavitt’s comments came as the heads of state of major European powers voiced resistance against Trump’s long-running desire to annex the Arctic territory.

Further Significant Events

• Family Assistance Blocked: The Trump administration is withholding more than $10 billion in federal childcare and family assistance funds to California, Colorado, Illinois, Minnesota, and New York. The Department of Health and Human Services (HHS) cited allegations of 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 “lawlessness” for keeping records under seal.
• Immigration Crackdown in Minnesota: The administration has deployed more immigration agents to Minnesota, continuing growing pressure 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 abandon his “fantasies about annexation” 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 “demise” of the military alliance.
• Law Enforcement Priorities Shifted: 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).

Market Reaction

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

Criticism from Lawmakers

The idea of an invasion against Greenland encountered immediate bipartisan pushback from US legislators. Democrat Senator Ruben Gallego vowed to introduce a resolution to block such a move. Republican 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 international geopolitical context remains tense, with the US concurrently pursuing significant confrontations in Venezuela and the North Atlantic while implementing contentious domestic policy shifts.