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Ex-President Donald Trump has stated that the Venezuelan government will be “turning over” approximately $2 billion worth of Venezuelan oil to the US. This major agreement would redirect shipments originally destined for China while assisting Venezuela sidestep further oil production cuts.

“This Oil will be sold at its Market Price, and that revenue will be managed by me, as the President of the United States of America, to ensure it is used to help the citizens of Venezuela and the United States!” Trump proclaimed in an digital statement.

Venezuelan government officials and the state-owned firm PDVSA offered no response on the supposed agreement.

Background: An Embargo and an Arrest

Venezuela currently has millions of barrels of oil aboard tankers and held in storage that it has been prevented from shipping due to a embargo ordered by the Trump administration. This coercive strategy ended with the ouster of Nicolás Maduro, who was seized by US forces over the recent weekend.

While high-ranking Venezuelan officials have called Maduro’s capture a abduction and alleged the US of trying to steal the country’s enormous oil reserves, Tuesday’s declaration is seen as a clear indicator that the remaining government is bowing to Trump’s demand to open up to US oil companies or risk more military action.

Another Goal: The Quest for Greenland

Meanwhile, Trump and his team have stated they are “exploring” a “spectrum of choices” in an bid to acquire 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 perfectly clear that acquiring Greenland is a national security priority of the United States, and it’s vital to thwart our opponents in the Arctic region,” said White House press secretary Karoline Leavitt. “The president and his team are considering a set of options to accomplish this significant 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 major European powers expressed opposition against Trump’s persistent desire to annex the Arctic territory.

Further Significant Events

• Family Assistance Blocked: The Trump administration is blocking more than $10 billion in federal child and family aid funds to several states including California and New York. The Department of Health and Human Services (HHS) cited allegations of fraud and misuse.
• Sealed Records: The Department of Justice has released a tiny fraction of the much-discussed Epstein files, a court filing has revealed. Democrats have stepped up criticism of the administration’s “lawlessness” for sealing the files.
• ICE Surge in 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 “fantasies about annexation” 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 “collapse” of the military alliance.
• Law Enforcement Priorities Shifted: Democratic senators stated in a letter that the Trump administration has ceased work to combat trafficking and cartel activity 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 shockwaves through the markets. The price of oil declined after Trump’s announcement, with traders bracing for more supply hitting the market. West Texas Intermediate fell by more than 1.5 percent, while the international benchmark, Brent crude, also slipped.

Bipartisan Opposition

The idea of military action against Greenland met with immediate cross-party 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 “the right course”, and other Republican senators warned it could lead to the “collapse” of NATO.

The wider geopolitical situation remains fraught, with the US at once pursuing major disputes in South America and the North Atlantic while implementing divisive domestic policy shifts.