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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 US. This major agreement would redirect shipments originally headed to China while allowing Venezuela sidestep deeper oil production cuts.

“This Petroleum will be sold at its prevailing market price, and that proceeds will be overseen by me, as the President of the United States of America, to guarantee it is used to help the population of Venezuela and the United States!” Trump wrote in an digital statement.

Venezuelan government officials and the state-owned firm PDVSA did not provide comment on the supposed agreement.

Background: A Blockade and a Capture

Venezuela currently has huge volumes of oil loaded on tankers and in onshore tanks that it has been blocked from exporting due to a naval blockade enacted by the Trump administration. This pressure campaign reached its peak with the toppling of Nicolás Maduro, who was captured by United States troops over the recent weekend.

While top Venezuelan officials have described Maduro’s capture a illegal seizure and alleged the US of trying to steal the country’s immense oil reserves, Tuesday’s declaration is seen as a clear indicator that the current government is bowing to Trump’s ultimatum to grant access to US oil companies or be threatened with further military intervention.

A Separate Agenda: The Quest for Greenland

Meanwhile, Trump and his aides have stated they are “looking into” a “range of options” in an bid 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 perfectly clear that obtaining Greenland is a vital security interest of the United States, and it’s essential 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 achieve this significant 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 leaders of major European powers voiced resistance against Trump’s long-running desire to annex 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 five major states. The Department of Health and Human Services (HHS) cited issues regarding fraud and misuse.
• Epstein Files Withheld: The Department of Justice has released a tiny fraction of the so-called Epstein files, a court filing has disclosed. Democrats have stepped up criticism of the administration’s “unlawful actions” for keeping records under seal.
• Agents Deployed to Minnesota: The administration has deployed more immigration agents to Minnesota, part of 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 relinquish his “dreams of taking over” Greenland and accused the US of “completely and utterly 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.
• Focus Changed: Democratic senators alleged in a letter that the Trump administration has stopped trying to combat exploitation and trafficking as it diverts thousands of law enforcement personnel to Immigration and Customs Enforcement (ICE).

Market Reaction

The aftermath of the US intervention in Venezuela sent tremors through global markets. The price of oil fell 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 slipped.

Bipartisan Opposition

The idea of an invasion against Greenland encountered swift cross-party pushback 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 broader geopolitical context remains uncertain, with the US at once engaging in major disputes in South America and the North Atlantic while carrying out controversial domestic policy shifts.