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Ex-President Donald Trump has stated that Venezuela will be “turning over” an estimated $2 billion worth of crude oil from Venezuela to the US. This key deal would divert supplies originally headed to China while potentially helping Venezuela evade further oil production cuts.

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

Authorities in Venezuela and the state-owned firm PDVSA did not provide comment on the reported agreement.

Context: An Embargo and an Arrest

Venezuela currently has huge volumes of oil loaded on tankers and in onshore tanks that it has been prevented from shipping due to a embargo ordered by the Trump administration. This campaign of pressure culminated in the ouster of Nicolás Maduro, who was captured by American military forces over the recent weekend.

While senior Venezuelan officials have labeled Maduro’s capture a abduction and alleged the US of attempting to seize the country’s enormous oil reserves, Tuesday’s declaration is seen as a powerful signal that the remaining government is complying with Trump’s ultimatum to provide entry to US oil companies or face the risk of further military incursion.

Parallel Ambitions: The Quest for Greenland

At the same time, Trump and his team have stated they are “exploring” a “range of options” in an effort to obtain 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 key national security objective of the United States, and it’s vital to deter our opponents in the Arctic region,” said White House press secretary Karoline Leavitt. “The president and his team are considering a series of options to achieve this important foreign policy goal, and of course, utilizing the US military is one available path at the commander-in-chief’s discretion.”

Leavitt’s comments came as the heads of state of leading European powers expressed opposition against Trump’s longstanding desire to annex the Arctic territory.

Additional Major Updates

• Family Assistance Blocked: The Trump administration is withholding more than $10 billion in federal childcare and family support funds to California, Colorado, Illinois, Minnesota, and New York. The Department of Health and Human Services (HHS) cited issues regarding fraud and misuse.
• Epstein Files Withheld: The Department of Justice has released less than 1% of the so-called Epstein files, a court filing has shown. Democrats have stepped up criticism of the administration’s “lawlessness” for withholding the documents.
• ICE Surge in Minnesota: The administration has dispatched 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 “entirely unacceptable” rhetoric. The Prime Minister of Denmark, Mette Frederiksen, previously warned that a US attack on a NATO ally would mean the “end” of the military alliance.
• Focus Changed: 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).

Financial Impact

The aftermath of the US intervention in Venezuela sent shockwaves through global markets. The price of oil declined after Trump’s announcement, with traders expecting more supply becoming available. West Texas Intermediate fell by more than 1.5 percent, while the international benchmark, Brent crude, also decreased.

Criticism from Lawmakers

The idea of military action against Greenland met with immediate bipartisan opposition from US legislators. Democrat Senator Ruben Gallego vowed to introduce a resolution to block such a move. GOP House Speaker Mike Johnson said he did not think military action was “suitable”, and other Republican senators warned it could lead to the “collapse” of NATO.

The broader geopolitical situation remains uncertain, with the US at once pursuing significant disputes in Venezuela and the Arctic while carrying out controversial domestic policy shifts.