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Former President Donald Trump has announced that Venezuela will be “handing over” around $2 billion worth of crude oil from Venezuela to the US. This flagship negotiation would redirect shipments originally destined for China while assisting Venezuela avoid further oil production cuts.

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

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

Background: An Embargo and an Arrest

Venezuela currently has millions of barrels of oil aboard tankers and in storage tanks that it has been prevented from shipping due to a embargo imposed by the Trump administration. This coercive strategy culminated in the ouster of Nicolás Maduro, who was captured by United States troops over the recent weekend.

While senior Venezuelan officials have called Maduro’s capture a illegal seizure and alleged the US of trying to steal the country’s vast oil reserves, Tuesday’s announcement is seen as a clear indicator that the current government is complying with Trump’s ultimatum to provide entry to US oil companies or risk additional military incursion.

Another Goal: Acquiring Greenland

Simultaneously, Trump and his advisers have stated they are “examining” a “variety of possibilities” in an effort to obtain 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 well known that securing Greenland is a vital security interest 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 range of options to accomplish this critical foreign policy goal, and of course, utilizing the US military is always an option at the commander-in-chief’s discretion.”

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

Additional Major Updates

• Aid Money Halted: The Trump administration is blocking more than $10 billion in federal childcare and family support funds to California, Colorado, Illinois, Minnesota, and New York. The Department of Health and Human Services (HHS) cited allegations of 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 shown. Democrats have escalated criticism of the administration’s “lawlessness” for sealing the files.
• ICE Surge in Minnesota: The administration has sent more immigration agents to Minnesota, in an extension of increasing rhetoric against the state and its immigrant populations. Immigration officials called it the agency’s “largest operation to date”.
• Greenland’s Firm Rejection: Greenland’s Prime Minister, Jens-Frederik Nielsen, urged Trump to relinquish his “notions of seizing” 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 “end” of the military alliance.
• Resources Diverted from Trafficking: Democratic senators alleged in a letter that the Trump administration has ceased work to combat child exploitation, human trafficking, and cartels as it redirects thousands of law enforcement personnel to Immigration and Customs Enforcement (ICE).

Financial Impact

The aftermath of the US intervention in Venezuela sent shockwaves through global markets. The price of oil fell after Trump’s announcement, with traders bracing for more supply becoming available. West Texas Intermediate fell by 1.6%, while the international benchmark, Brent crude, also dropped.

Bipartisan Opposition

The idea of military action against Greenland encountered significant cross-party opposition from US legislators. Democratic 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 “end” of NATO.

The wider diplomatic context remains uncertain, with the US at once pursuing high-stakes standoffs in South America and the Arctic while implementing contentious domestic policy shifts.