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Ex-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 flagship negotiation would divert supplies originally bound for China while allowing Venezuela evade further oil production cuts.

“This Crude will be sold at its Market Price, and that proceeds will be overseen by me, as President of the United States of America, to make certain it is used to benefit the citizens of Venezuela and the United States!” Trump wrote in an social media post.

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

Context: A Blockade and a Capture

Venezuela currently has huge volumes of oil loaded on tankers and in storage tanks that it has been blocked from exporting due to a naval blockade ordered by the Trump administration. This coercive strategy culminated in the removal of Nicolás Maduro, who was seized by US forces over the recent weekend.

While senior Venezuelan officials have described Maduro’s capture a kidnapping and charged the US of seeking to take the country’s enormous oil reserves, Tuesday’s declaration is seen as a powerful signal that the remaining government is complying with Trump’s requirement to provide entry to US oil companies or face the risk of further military action.

Another Goal: The Quest for Greenland

Meanwhile, Trump and his aides have stated they are “looking into” a “variety of possibilities” in an attempt to acquire Greenland. A presidential statement on Tuesday noted that using the US military to do so is “remains a possibility”.

“President Trump has made it well known that securing Greenland is a national security priority of the United States, and it’s vital to counter our adversaries in the Arctic region,” said White House press secretary Karoline Leavitt. “The president and his team are evaluating a set of options to accomplish this important foreign policy goal, and of course, employing the US military is one available path at the commander-in-chief’s disposal.”

Leavitt’s comments came as the heads of state of key European powers expressed opposition against Trump’s long-running desire to seize the Arctic territory.

Further Significant Events

• Childcare Funds Frozen: The Trump administration is withholding 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 concerns about fraud and misuse.
• Epstein Files Withheld: The Department of Justice has released a minuscule portion of the so-called Epstein files, a court filing has shown. Democrats have escalated criticism of the administration’s “disregard for the law” for sealing the files.
• Agents Deployed to Minnesota: The administration has sent more immigration agents to Minnesota, continuing 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 relinquish 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 “demise” of the military alliance.
• Focus Changed: Democratic senators stated in a letter that the Trump administration has ceased work to combat exploitation and trafficking 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 ripples through global markets. The price of oil dropped after Trump’s announcement, with traders anticipating more supply entering the market. West Texas Intermediate fell by 1.6%, while the international benchmark, Brent crude, also decreased.

Criticism from Lawmakers

The idea of military action against Greenland faced swift bipartisan criticism from US legislators. Democrat 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 “suitable”, and other Republican senators warned it could lead to the “demise” of NATO.

The international geopolitical landscape remains fraught, with the US simultaneously involved in significant confrontations in Venezuela and the North Atlantic while implementing contentious domestic policy shifts.