US President Donald Trump has announced that Washington and Caracas have struck a major agreement giving the United States rights to nearly 65 billion barrels of Venezuela's oil reserves. Trump described it as the biggest deal in history, saying it followed talks between US Secretary of State Marco Rubio, Defence Secretary Hegseth, and Venezuela's acting president, Delcy Rodríguez.
Maduro's Arrest Earlier This Year
In January, US Delta Force troops raided the Venezuelan capital, Caracas, and arrested then-president Nicolás Maduro. Following the raid, Trump signalled that American oil companies would get the opportunity to resume operations in Venezuela. Trump alleged that decades ago, then-Venezuelan president Hugo Chávez had nationalised the assets of foreign firms, including American oil companies, stripping the US of its rights in the country.
On Trump's orders, the US military carried out a special operation to capture Maduro and bring him to the United States. The action was taken over federal charges linking him to drug trafficking and narco-terrorism.
Rising Petrol Prices in the US
Petrol prices have been climbing steadily in the United States, piling political pressure on the Trump administration. The Iran-linked war has continued for roughly six months with no end in sight, forcing the US to draw heavily from its Strategic Petroleum Reserve. As a result, reserves fell to under 300 million barrels by early August.
Venezuela holds one of the world's largest oil reserves, estimated at around 303 billion barrels. According to the US Energy Information Administration (EIA), this accounts for roughly 17 percent of global oil reserves. Notably, while exploration for new reserves continues in much of the rest of the world, most of Venezuela's reserves have already been identified. Despite this, weak infrastructure means the country contributes just 1 percent of global oil production.