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Former President Donald Trump has declared that the Venezuelan government will be “transferring” around $2 billion worth of Venezuelan oil to the United States. This flagship negotiation would divert supplies originally bound for China while allowing Venezuela avoid deeper oil production cuts.

“This Oil will be sold at its prevailing market price, and that proceeds will be overseen by me, as the President of the United States of America, to ensure it is used to assist the citizens of Venezuela and the United States!” Trump proclaimed in an digital statement.

Authorities in Venezuela and the state company PDVSA have not commented on the alleged agreement.

Background: A Blockade and a Capture

Venezuela currently has huge volumes of oil aboard tankers and held in storage that it has been prevented from shipping due to a embargo enacted by the Trump administration. This pressure campaign reached its peak with the removal of Nicolás Maduro, who was captured by American military forces over the weekend.

While top Venezuelan officials have called Maduro’s capture a abduction and charged the US of trying to steal the country’s vast oil reserves, Tuesday’s declaration is seen as a clear indicator that the remaining government is bowing to Trump’s requirement to open up to US oil companies or risk additional military intervention.

Another Goal: The Quest for Greenland

Meanwhile, Trump and his advisers have stated they are “exploring” a “spectrum of choices” in an bid to take control of Greenland. A presidential statement on Tuesday noted that using the US military to do so is “on the table”.

“President Trump has made it abundantly clear that acquiring Greenland is a vital security interest of the United States, and it’s vital to counter our rivals in the Arctic region,” said White House press secretary Karoline Leavitt. “The president and his team are discussing a series of options to accomplish this significant foreign policy goal, and of course, utilizing the US military is a constant possibility at the commander-in-chief’s disposal.”

Leavitt’s comments came as the leaders of leading European powers voiced resistance against Trump’s longstanding desire to seize the Arctic territory.

Other Key Developments

• Aid Money Halted: The Trump administration is blocking more than $10 billion in federal childcare and family support funds to five major states. The Department of Health and Human Services (HHS) cited allegations of fraud and misuse.
• Limited Document Release: The Department of Justice has released a minuscule portion of the so-called Epstein files, a court filing has shown. Democrats have escalated criticism of the administration’s “lawlessness” for keeping records under seal.
• Agents Deployed to Minnesota: The administration has deployed more immigration agents to Minnesota, part of increasing rhetoric against the state and its immigrant populations. Immigration officials called it the agency’s “biggest-ever operation”.
• Clear Opposition from Greenland: Greenland’s Prime Minister, Jens-Frederik Nielsen, urged Trump to give up his “dreams of taking over” Greenland and accused the US of “entirely unacceptable” rhetoric. The Prime Minister of Denmark, Mette Frederiksen, previously warned that a US attack on a NATO ally would mean the “demise” of the military alliance.
• Focus Changed: Democratic senators claimed in a letter that the Trump administration has ceased work to combat exploitation and trafficking as it redirects thousands of law enforcement personnel to Immigration and Customs Enforcement (ICE).

Market Reaction

The aftermath 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 dropped.

Bipartisan Opposition

The idea of military action against Greenland encountered immediate cross-party opposition from US legislators. Democratic 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 “suitable”, and other Republican senators warned it could lead to the “end” of NATO.

The international geopolitical landscape remains fraught, with the US simultaneously pursuing high-stakes standoffs in Venezuela and the North Atlantic while implementing divisive domestic policy shifts.