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US and Venezuela reach 'historic' oil deal, Trump says

BBC World · 2026-08-29

AI SUMMARY

• What happened: The US has secured a deal with Venezuela to control over 65 billion barrels of its proven oil reserves, announced by President Trump. • Why it matters: This agreement is expected to double American oil reserves, increase oil supply, and potentially lower gas prices for consumers, while also bringing significant investment to Venezuela's struggling economy. • What to watch next: Observers will be monitoring the implementation of the deal, its impact on US-Venezuela relations, and the broader effects on the global oil market and energy independence.

**US and Venezuela Reach 'Historic' Oil Deal, Trump Announces**

*Published: 29 August 2026, 00:54 BST*

In a significant development in international relations and energy policy, the United States has secured a deal with Venezuela to control over 65 billion barrels of the country's proven oil reserves, as announced by President Donald Trump. This agreement is being hailed as a "historic transaction" that could have far-reaching implications for both nations.

President Trump took to social media to share the news, stating that the deal "MORE THAN DOUBLES American Oil Reserves, greatly increases our Oil Supply, and will substantially lower Gas Prices for all Americans." The announcement comes in the wake of rising gas prices in the US, which have put pressure on the Trump administration to address energy costs for consumers.

The agreement follows a tumultuous year for Venezuela, marked by political upheaval and the arrest of its former president, Nicolás Maduro, in January. Maduro and his wife, Cilia Flores, were detained in a military operation authorized by Trump, who stated that the US would oversee Venezuela until a "safe, proper and judicious transition" could occur. This transition is expected to facilitate the US's control over the sale of Venezuelan oil.

Secretary of State Marco Rubio expressed optimism about the deal, calling it "a huge win for both the American and Venezuelan people." He emphasized that the agreement is anticipated to bring nearly $100 billion in private investment to Venezuela, create thousands of high-paying jobs, and aid in the reconstruction of the country's struggling economy.

While specific details of the deal remain undisclosed, Trump mentioned that Secretary Rubio and Defence Secretary Pete Hegseth negotiated the agreement with Venezuela's interim president, Delcy Rodriguez, through a partnership with private business entities. However, the president did not provide further information about the nature of this partnership or any commitments that the US might have made as part of the deal. Notably, Trump assured that the agreement would be reached "at no cost to the American taxpayer."

Venezuela holds the largest proven oil reserves in the world, estimated at approximately 303 billion barrels. However, oil production in the country has significantly declined since its peak in the late 1990s, which has contributed to the ongoing economic crisis. The Trump administration has previously called for US oil companies to invest at least $100 billion to revitalize Venezuela's oil industry.

Furthermore, Trump has asserted that the US has rights to Venezuela's oil, alleging that the country had previously "unilaterally seized and sold American oil, American assets and American platforms, costing us billions and billions of dollars." This claim has been part of the broader narrative surrounding US-Venezuela relations, which have been strained for years.

As the details of this deal unfold, it remains to be seen how it will impact the geopolitical landscape in Latin America and the global oil market. The agreement could potentially reshape the dynamics of energy supply and demand, particularly as the US seeks to bolster its energy independence and lower consumer prices domestically.

In summary, the US-Venezuela oil deal marks a pivotal moment in the relationship between the two countries, with implications for both the American economy and the future of Venezuela's oil industry. As the situation develops, stakeholders from both nations will be closely monitoring the outcomes of this unprecedented agreement.

Source: BBC World
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