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Former President Donald Trump has declared that Venezuela will be “turning over” approximately $2 billion worth of crude oil from Venezuela to the United States. This major agreement would redirect shipments originally destined for China while assisting Venezuela evade further 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 ensure it is used to benefit the citizens of Venezuela and the United States!” Trump wrote in an online post.

Officials in Caracas and the state company PDVSA did not provide comment on the supposed agreement.

Background: A Blockade and a Capture

Venezuela currently has vast quantities of oil loaded on tankers and in onshore tanks that it has been prevented from shipping due to a naval blockade imposed by the Trump administration. This pressure campaign reached its peak with the removal of Nicolás Maduro, who was captured by US forces over the past weekend.

While high-ranking Venezuelan officials have described Maduro’s capture a kidnapping and alleged the US of trying to steal the country’s immense oil reserves, Tuesday’s statement is seen as a strong sign that the interim government is responding to Trump’s demand to provide entry to US oil companies or be threatened with further military intervention.

A Separate Agenda: The Quest for Greenland

Meanwhile, Trump and his advisers have stated they are “exploring” a “variety of possibilities” in an bid to take control of 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 acquiring Greenland is a key national security objective of the United States, and it’s essential to counter our opponents in the Arctic region,” said White House press secretary Karoline Leavitt. “The president and his team are discussing a series of options to pursue this critical foreign policy goal, and of course, using the US military is always an option at the commander-in-chief’s command.”

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

Other Key Developments

• 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 issues regarding fraud and misuse.
• Epstein Files Withheld: The Department of Justice has released less than 1% of the much-discussed Epstein files, a court filing has shown. Democrats have stepped up criticism of the administration’s “disregard for the law” for withholding the documents.
• Immigration Crackdown in Minnesota: The administration has dispatched more immigration agents to Minnesota, continuing growing pressure against the state and its immigrant populations. Immigration officials called it the agency’s “largest operation to date”.
• Clear Opposition from Greenland: Greenland’s Prime Minister, Jens-Frederik Nielsen, urged Trump to abandon his “fantasies about annexation” 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 “end” of the military alliance.
• Resources Diverted from Trafficking: Democratic senators alleged in a letter that the Trump administration has ceased work to combat trafficking and cartel activity as it reassigns thousands of law enforcement personnel to Immigration and Customs Enforcement (ICE).

Financial Impact

The aftermath of the US intervention in Venezuela sent ripples through global markets. The price of oil declined after Trump’s announcement, with traders expecting more supply entering the market. West Texas Intermediate fell by 1.6%, while the international benchmark, Brent crude, also dropped.

Bipartisan Opposition

The idea of using the military against Greenland encountered significant cross-party opposition 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 “appropriate”, and other Republican senators warned it could lead to the “collapse” of NATO.

The international diplomatic context remains tense, with the US simultaneously pursuing major disputes in Venezuela and the North Atlantic while implementing contentious domestic policy shifts.