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Ex-President Donald Trump has declared that the Venezuelan government will be “turning over” an estimated $2 billion worth of Venezuelan crude to the US. This key deal would divert supplies originally headed to China while potentially helping Venezuela avoid deeper oil production cuts.

“This Oil will be sold at its prevailing market price, and that money will be overseen by me, as the President of the United States of America, to make certain it is used to assist the citizens of Venezuela and the United States!” Trump stated in an online post.

Officials in Caracas and the national oil company PDVSA have not commented on the alleged agreement.

The Situation: A Blockade and a Capture

Venezuela currently has millions of barrels of oil aboard tankers and held in storage that it has been blocked from exporting due to a blockade imposed by the Trump administration. This coercive strategy culminated in the removal of Nicolás Maduro, who was apprehended by American military forces over the recent weekend.

While senior Venezuelan officials have called Maduro’s capture a illegal seizure and accused the US of trying to steal the country’s enormous oil reserves, Tuesday’s statement is seen as a strong sign that the current government is complying with Trump’s demand to open up to US oil companies or be threatened with further military incursion.

Another Goal: The Quest for Greenland

Meanwhile, Trump and his team have stated they are “exploring” a “spectrum of choices” in an bid to take control of Greenland. A White House statement on Tuesday noted that using the US military to do so is “always an option”.

“President Trump has made it abundantly clear that securing Greenland is a national security priority of the United States, and it’s crucial to thwart our rivals in the Arctic region,” said White House press secretary Karoline Leavitt. “The president and his team are evaluating 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 disposal.”

Leavitt’s comments came as the top officials of leading European powers pushed back against Trump’s persistent desire to seize the Arctic territory.

Additional Major Updates

• Aid Money Halted: The Trump administration is withholding more than $10 billion in federal child and family aid funds to California, Colorado, Illinois, Minnesota, and New York. The Department of Health and Human Services (HHS) cited allegations of fraud and misuse.
• Limited Document Release: The Department of Justice has released a minuscule portion of the so-called Epstein files, a court filing has disclosed. Democrats have stepped up criticism of the administration’s “unlawful actions” for sealing the files.
• Agents Deployed to Minnesota: The administration has deployed more immigration agents to Minnesota, part of 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 give up his “dreams of taking over” 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 stopped trying to combat exploitation and trafficking as it redirects thousands of law enforcement personnel to Immigration and Customs Enforcement (ICE).

Financial Impact

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

Bipartisan Opposition

The idea of military action against Greenland encountered swift bipartisan 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 “appropriate”, and other Republican senators warned it could lead to the “collapse” of NATO.

The wider diplomatic landscape remains uncertain, with the US concurrently engaging in major standoffs in South America and the Arctic while enacting contentious domestic policy shifts.