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Former President Donald Trump has declared that the Venezuelan government will be “handing over” an estimated $2 billion worth of crude oil from Venezuela to the US. This flagship negotiation would redirect shipments originally destined for China while allowing Venezuela evade deeper oil production cuts.

“This Petroleum will be sold at its current market value, and that revenue will be overseen 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 stated in an social media post.

Venezuelan government officials and the national oil company PDVSA offered no response on the supposed agreement.

The Situation: An Embargo and an Arrest

Venezuela currently has vast quantities of oil aboard tankers and in onshore tanks that it has been unable to ship due to a embargo ordered by the Trump administration. This pressure campaign culminated in the toppling of Nicolás Maduro, who was apprehended by US forces over the past weekend.

While top Venezuelan officials have called Maduro’s capture a illegal seizure and accused the US of trying to steal the country’s vast oil reserves, Tuesday’s announcement is seen as a clear indicator that the current government is complying with Trump’s requirement to provide entry to US oil companies or face the risk of additional military intervention.

A Separate Agenda: The Quest for Greenland

Meanwhile, Trump and his aides have stated they are “examining” a “range of options” 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 obtaining Greenland is a vital security interest of the United States, and it’s vital to counter 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 pursue this significant foreign policy goal, and of course, utilizing the US military is always an option at the commander-in-chief’s command.”

Leavitt’s comments came as the leaders of leading European powers expressed opposition against Trump’s persistent desire to take over the Arctic territory.

Additional Major Updates

• Aid Money Halted: The Trump administration is withholding more than $10 billion in federal child and family aid funds to five major states. The Department of Health and Human Services (HHS) cited allegations of fraud and misuse.
• Sealed Records: The Department of Justice has released a minuscule portion of the much-discussed Epstein files, a court filing has shown. Democrats have stepped up criticism of the administration’s “unlawful actions” for keeping records under seal.
• Immigration Crackdown in Minnesota: The administration has sent more immigration agents to Minnesota, continuing growing pressure against the state and its immigrant populations. Immigration officials called it the agency’s “most significant crackdown so far”.
• Clear Opposition from Greenland: Greenland’s Prime Minister, Jens-Frederik Nielsen, urged Trump to relinquish 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.
• 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 aftermath of the US intervention in Venezuela sent ripples through the markets. The price of oil fell after Trump’s announcement, with traders anticipating more supply hitting the market. US crude fell by 1.6%, while the international benchmark, Brent crude, also dropped.

Bipartisan Opposition

The idea of military action against Greenland encountered swift 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 “appropriate”, and other Republican senators warned it could lead to the “end” of NATO.

The broader diplomatic situation remains fraught, with the US at once engaging in significant disputes in Venezuela and the North Atlantic while enacting controversial domestic policy shifts.