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Ex-President Donald Trump has stated that Venezuela will be “handing over” around $2 billion worth of crude oil from Venezuela to the United States. This key deal would redirect shipments originally bound for China while allowing Venezuela sidestep more severe oil production cuts.

“This Crude will be sold at its prevailing market price, and that revenue will be controlled by me, as President of the United States of America, to ensure it is used to benefit the citizens of Venezuela and the United States!” Trump wrote in an digital statement.

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

Context: A Blockade and a Capture

Venezuela currently has vast quantities of oil loaded on tankers and in onshore tanks that it has been blocked from exporting due to a embargo enacted by the Trump administration. This campaign of pressure reached its peak with the toppling of Nicolás Maduro, who was captured by US forces over the recent weekend.

While high-ranking Venezuelan officials have called Maduro’s capture a illegal seizure and alleged the US of seeking to take the country’s vast oil reserves, Tuesday’s declaration is seen as a strong sign that the remaining government is bowing to Trump’s requirement to grant access to US oil companies or face the risk of more military incursion.

A Separate Agenda: The Quest for Greenland

At the same time, Trump and his aides have stated they are “exploring” a “spectrum of choices” in an effort to acquire Greenland. A presidential statement on Tuesday noted that using the US military to do so is “on the table”.

“President Trump has made it abundantly clear that securing Greenland is a national security priority of the United States, and it’s essential to thwart our adversaries in the Arctic region,” said White House press secretary Karoline Leavitt. “The president and his team are considering a set of options to achieve this important foreign policy goal, and of course, employing the US military is a constant possibility at the commander-in-chief’s discretion.”

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

Other Key Developments

• Family Assistance Blocked: The Trump administration is blocking more than $10 billion in federal childcare and family assistance 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 a minuscule portion of the much-discussed Epstein files, a court filing has revealed. Democrats have stepped up criticism of the administration’s “unlawful actions” for sealing the files.
• ICE Surge in Minnesota: The administration has deployed more immigration agents to Minnesota, part of growing pressure against the state and its immigrant populations. Immigration officials called it the agency’s “biggest-ever operation”.
• 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 “wholly inappropriate” 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 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).

Oil Price Movement

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. US crude fell by over 1.5%, while the international benchmark, Brent crude, also dropped.

Political Backlash

The idea of using the military against Greenland encountered swift cross-party criticism from US legislators. Democratic 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 “appropriate”, and other Republican senators warned it could lead to the “collapse” of NATO.

The international geopolitical situation remains uncertain, with the US at once pursuing high-stakes disputes in Venezuela and the North Atlantic while enacting controversial domestic policy shifts.