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Ex-President Donald Trump has declared that the Venezuelan government will be “transferring” around $2 billion worth of Venezuelan oil to the United States. This key deal would divert supplies originally bound for China while allowing Venezuela sidestep more severe oil production cuts.

“This Oil will be sold at its prevailing market price, and that revenue will be managed by me, as the President of the United States of America, to guarantee it is used to benefit the citizens of Venezuela and the United States!” Trump stated in an online post.

Authorities in Venezuela and the national oil company PDVSA offered no response on the reported agreement.

The Situation: An Embargo and an Arrest

Venezuela currently has vast quantities of oil aboard tankers and in storage tanks that it has been prevented from shipping due to a blockade imposed by the Trump administration. This coercive strategy culminated in the removal of Nicolás Maduro, who was seized by US forces over the recent weekend.

While high-ranking Venezuelan officials have labeled Maduro’s capture a abduction and accused the US of attempting to seize the country’s enormous oil reserves, Tuesday’s declaration is seen as a powerful signal that the current government is bowing to Trump’s demand to provide entry to US oil companies or be threatened with further military incursion.

Another Goal: The Pursuit of Greenland

At the same time, Trump and his team have stated they are “exploring” a “spectrum of choices” in an bid 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 national security priority of the United States, and it’s essential to thwart our rivals in the Arctic region,” said White House press secretary Karoline Leavitt. “The president and his team are evaluating a set of options to pursue this critical foreign policy goal, and of course, using the US military is one available path at the commander-in-chief’s command.”

Leavitt’s comments came as the heads of state of key European powers voiced resistance against Trump’s persistent desire to seize the Arctic territory.

Other Key Developments

• Aid Money Halted: The Trump administration is withholding more than $10 billion in federal childcare and family assistance funds to five major states. 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 disclosed. Democrats have increased criticism of the administration’s “unlawful actions” for withholding the documents.
• Immigration Crackdown in Minnesota: The administration has sent 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 “most significant crackdown so far”.
• PM’s Strong Rebuke: 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 “collapse” of the military alliance.
• Focus Changed: Democratic senators stated in a letter that the Trump administration has ceased work to combat trafficking and cartel activity 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 tremors through financial markets. The price of oil fell after Trump’s announcement, with traders anticipating more supply entering the market. US crude fell by over 1.5%, while the international benchmark, Brent crude, also decreased.

Bipartisan Opposition

The idea of military action against Greenland encountered immediate bipartisan pushback 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 “the right course”, and other Republican senators warned it could lead to the “demise” of NATO.

The wider diplomatic context remains tense, with the US at once pursuing major disputes in South America and the North Atlantic while carrying out divisive domestic policy shifts.