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

“This Oil will be sold at its prevailing market price, and that proceeds will be managed by me, as the President of the United States of America, to make certain it is used to help the people of Venezuela and the United States!” Trump proclaimed in an digital statement.

Authorities in Venezuela and the state company PDVSA offered no response on the supposed agreement.

Context: A Blockade and a Capture

Venezuela currently has vast quantities of oil aboard tankers and in storage tanks that it has been prevented from shipping due to a naval blockade ordered by the Trump administration. This pressure campaign reached its peak with the toppling of Nicolás Maduro, who was seized by United States troops over the weekend.

While top Venezuelan officials have called Maduro’s capture a illegal seizure and accused the US of attempting to seize the country’s immense oil reserves, Tuesday’s statement is seen as a strong sign that the interim government is responding to Trump’s requirement to provide entry to US oil companies or be threatened with further military incursion.

Another Goal: The Pursuit of Greenland

Simultaneously, Trump and his team have stated they are “exploring” 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 “remains a possibility”.

“President Trump has made it well known that acquiring Greenland is a national security priority of the United States, and it’s essential to thwart our opponents in the Arctic region,” said White House press secretary Karoline Leavitt. “The president and his team are evaluating a range of options to achieve this critical foreign policy goal, and of course, utilizing the US military is a constant possibility at the commander-in-chief’s disposal.”

Leavitt’s comments came as the top officials of major European powers pushed back against Trump’s long-running desire to seize the Arctic territory.

Additional Major Updates

• Aid Money Halted: The Trump administration is freezing more than $10 billion in federal childcare and family assistance funds to five major states. The Department of Health and Human Services (HHS) cited allegations of fraud and misuse.
• Limited Document Release: The Department of Justice has released less than 1% of the so-called Epstein files, a court filing has shown. Democrats have escalated criticism of the administration’s “unlawful actions” for keeping records under seal.
• ICE Surge in Minnesota: The administration has deployed 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 “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.
• Resources Diverted from Trafficking: Democratic senators claimed in a letter that the Trump administration has abandoned efforts to combat child exploitation, human trafficking, and cartels 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 tremors through financial markets. The price of oil dropped after Trump’s announcement, with traders expecting more supply entering the market. US crude fell by 1.6%, while the international benchmark, Brent crude, also decreased.

Political Backlash

The idea of military action against Greenland met with immediate bipartisan pushback 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 “appropriate”, and other Republican senators warned it could lead to the “demise” of NATO.

The international diplomatic landscape remains fraught, with the US at once engaging in major standoffs in South America and the Arctic while carrying out controversial domestic policy shifts.