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Ex-President Donald Trump has declared that Venezuela will be “handing over” approximately $2 billion worth of Venezuelan crude to the US. This key deal would reroute cargoes originally headed to China while potentially helping Venezuela evade further oil production cuts.

“This Petroleum will be sold at its current market value, and that revenue will be controlled by me, as President of the United States of America, to ensure it is used to assist the people of Venezuela and the United States!” Trump proclaimed in an social media post.

Authorities in Venezuela and the national oil company PDVSA did not provide comment on the alleged agreement.

The Situation: A Blockade and a Capture

Venezuela currently has vast quantities of oil aboard tankers and in onshore tanks that it has been blocked from exporting due to a blockade imposed by the Trump administration. This campaign of pressure ended with the removal of Nicolás Maduro, who was apprehended by American military forces over the weekend.

While top Venezuelan officials have described Maduro’s capture a kidnapping and alleged the US of seeking to take the country’s enormous oil reserves, Tuesday’s statement is seen as a clear indicator that the interim government is complying with Trump’s demand to provide entry to US oil companies or risk more military intervention.

Another Goal: The Pursuit of Greenland

Simultaneously, Trump and his team have stated they are “looking into” a “spectrum of choices” in an effort to take control of Greenland. A White House statement on Tuesday noted that using the US military to do so is “always an option”.

“President Trump has made it perfectly clear that obtaining Greenland is a vital security interest of the United States, and it’s vital to deter our opponents in the Arctic region,” said White House press secretary Karoline Leavitt. “The president and his team are considering a set of options to accomplish this critical foreign policy goal, and of course, utilizing the US military is a constant possibility at the commander-in-chief’s command.”

Leavitt’s comments came as the top officials of major European powers voiced resistance against Trump’s persistent desire to take over the Arctic territory.

Additional Major Updates

• Childcare Funds Frozen: 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 concerns about fraud and misuse.
• Limited Document Release: The Department of Justice has released a tiny fraction of the so-called Epstein files, a court filing has revealed. Democrats have escalated criticism of the administration’s “unlawful actions” for sealing the files.
• Immigration Crackdown in Minnesota: The administration has deployed more immigration agents to Minnesota, in an extension of growing pressure 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 give up 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 “collapse” of the military alliance.
• Law Enforcement Priorities Shifted: 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).

Oil Price Movement

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

Political Backlash

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. GOP House Speaker Mike Johnson said he did not think military action was “the right course”, and other Republican senators warned it could lead to the “end” of NATO.

The wider geopolitical landscape remains uncertain, with the US concurrently pursuing major standoffs in Venezuela and the North Atlantic while enacting controversial domestic policy shifts.