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Ex-President Donald Trump has announced that the Venezuelan government will be “transferring” an estimated $2 billion worth of Venezuelan oil to the United States. This major agreement would divert supplies originally headed to China while potentially helping Venezuela avoid further oil production cuts.

“This Petroleum will be sold at its Market Price, and that revenue will be overseen by me, as President of the United States of America, to ensure it is used to assist the citizens of Venezuela and the United States!” Trump proclaimed in an online post.

Officials in Caracas and the national oil company PDVSA offered no response on the alleged agreement.

Background: An Embargo and an Arrest

Venezuela currently has vast quantities of oil aboard tankers and in storage tanks that it has been blocked from exporting due to a blockade enacted by the Trump administration. This campaign of pressure reached its peak with the ouster of Nicolás Maduro, who was captured by American military forces over the past weekend.

While top Venezuelan officials have called Maduro’s capture a kidnapping and alleged the US of attempting to seize the country’s vast oil reserves, Tuesday’s statement is seen as a powerful signal that the remaining government is complying with Trump’s requirement to open up to US oil companies or face the risk of more military incursion.

Parallel Ambitions: Acquiring Greenland

At the same time, Trump and his aides have stated they are “looking into” a “variety of possibilities” in an effort to take control of 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 key national security objective of the United States, and it’s essential to deter our adversaries in the Arctic region,” said White House press secretary Karoline Leavitt. “The president and his team are discussing a set of options to pursue 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 key European powers voiced resistance against Trump’s longstanding desire to take over the Arctic territory.

Further Significant Events

• Aid Money Halted: The Trump administration is withholding more than $10 billion in federal childcare and family support funds to several states including California 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 much-discussed Epstein files, a court filing has shown. Democrats have escalated criticism of the administration’s “lawlessness” 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 “most significant crackdown so far”.
• Greenland’s Firm Rejection: Greenland’s Prime Minister, Jens-Frederik Nielsen, urged Trump to relinquish his “fantasies about annexation” 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 “demise” of the military alliance.
• Resources Diverted from Trafficking: Democratic senators stated in a letter that the Trump administration has stopped trying to combat exploitation and trafficking as it reassigns thousands of law enforcement personnel to Immigration and Customs Enforcement (ICE).

Oil Price Movement

The implications of the US intervention in Venezuela sent shockwaves through the markets. The price of oil dropped after Trump’s announcement, with traders expecting more supply hitting the market. US crude fell by 1.6%, while the international benchmark, Brent crude, also dropped.

Bipartisan Opposition

The idea of using the military against Greenland encountered immediate cross-party 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 “end” of NATO.

The broader diplomatic landscape remains uncertain, with the US at once engaging in major confrontations in South America and the Arctic while carrying out controversial domestic policy shifts.