Trump says US is taking partial control of Venezuela's oil reserves

U.S. President Donald Trump announced on Friday that the United States has entered into an agreement with Venezuela to gain control of over 65 billion barrels of the South American nation’s oil reserves. The declaration came via a social media post in which Trump described the deal as “the biggest oil deal in world history.” According to Trump, the arrangement involves a partnership with private businesses and grants the U.S. majority control of the reserves without any financial burden on American taxpayers. The deal reportedly includes collaboration with Secretary of State Marco Rubio and Defense Secretary Pete Hegseth, along with Delcy Rodríguez, Venezuela’s interim president. Trump claimed the agreement will significantly reduce gasoline prices in the United States. The announcement follows nearly nine months since the U.S. military, acting on Trump’s orders, conducted an operation to apprehend Venezuelan President Nicolás Maduro and transport him to the United States to face charges related to narcotics trafficking and terrorism. This action marked a pivotal shift in U.S.-Venezuelan relations and set the stage for the current agreement. Trump has faced increasing pressure to tackle rising fuel costs, particularly as the ongoing conflict involving Iran enters its sixth month without resolution. The U.S. has been drawing upon its strategic petroleum reserves, which dropped below 300 million barrels in early August, down more than 100 million barrels since the beginning of 2026. The war in the Middle East has disrupted oil transportation through the Strait of Hormuz, a critical passage for about 20 percent of global petroleum shipments before the conflict began. As a result, the average price of gasoline in the U.S. reached approximately $4.09 per gallon on Friday, compared to $3.21 at the same time last year. Despite the promise of new opportunities, convincing major American oil firms to return to Venezuela might prove challenging due to the country’s long-standing instability and deteriorating infrastructure. Shortly after Maduro’s removal, Trump invited oil executives to the White House, urging them to re-enter the market. While some showed interest, others remained cautious, citing previous negative experiences in the region. Darren Woods, CEO of ExxonMobil, stated that Venezuela currently appears “un-investable.” Trump has consistently maintained that Venezuela unlawfully seized U.S. oil resources during the tenure of former President Hugo Chávez, who nationalized numerous foreign-owned assets, including those held by American corporations. Delcy Rodríguez, assuming leadership in Venezuela, initiated measures to open the country’s oil industry to privatization, reversing a core principle of the socialist regime that had governed the nation for over two decades. Venezuela holds roughly 303 billion barrels of crude oil, accounting for about 17 percent of the world’s total supply, according to the U.S. Energy Information Administration. Experts note that while Venezuela possesses extensive, well-mapped oil reserves, its production capacity remains low, contributing less than 1 percent of the world’s output due to outdated infrastructure. The proposed agreement aims to provide the U.S. with a substantial stake in these reserves, potentially offering a solution to the global oil shortage exacerbated by the Iranian conflict. However, the specifics of the deal remain unclear, with neither the White House nor the Venezuelan government responding to requests for further information. The deal aligns with broader efforts by the U.S. to secure alternative oil sources amidst geopolitical tensions. Bloomberg reported earlier that discussions centered on partnerships involving the Department of Defense and Alejandro Betancourt, a prominent yet contentious energy investor serving as a liaison between the two nations. These talks reportedly targeted up to 17 oil fields within Venezuela’s primary petroleum regions. With midterm elections approaching, Trump’s focus on reducing fuel prices and addressing inflation could influence public perception and political outcomes in the upcoming vote.