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Ex-President Donald Trump has declared that Venezuela will be “transferring” around $2 billion worth of Venezuelan crude to the United States of America. This key deal would reroute cargoes originally destined for China while assisting Venezuela evade further oil production cuts.

“This Crude will be sold at its Market Price, and that revenue will be managed by me, as the President of the United States of America, to guarantee it is used to help the citizens of Venezuela and the United States!” Trump proclaimed in an social media post.

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

Background: An Embargo and an Arrest

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

While high-ranking Venezuelan officials have described Maduro’s capture a illegal seizure and accused the US of seeking to take the country’s immense oil reserves, Tuesday’s declaration is seen as a powerful signal that the interim government is complying with Trump’s requirement to open up to US oil companies or face the risk of additional military intervention.

Another Goal: The Quest for Greenland

Simultaneously, Trump and his advisers have stated they are “examining” a “variety of possibilities” 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 securing Greenland is a national security priority of the United States, and it’s crucial to thwart 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 achieve this critical foreign policy goal, and of course, employing 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 pushed back against Trump’s persistent desire to seize the Arctic territory.

Other Key Developments

• Family Assistance Blocked: The Trump administration is withholding more than $10 billion in federal childcare and family assistance funds to California, Colorado, Illinois, Minnesota, and New York. The Department of Health and Human Services (HHS) cited concerns about fraud and misuse.
• Limited Document Release: The Department of Justice has released a tiny fraction of the so-called Epstein files, a court filing has shown. Democrats have stepped up criticism of the administration’s “unlawful actions” for withholding the documents.
• ICE Surge in Minnesota: The administration has dispatched more immigration agents to Minnesota, continuing increasing rhetoric 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 give up his “notions of seizing” 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 “demise” of the military alliance.
• Law Enforcement Priorities Shifted: Democratic senators alleged in a letter that the Trump administration has abandoned efforts to combat child exploitation, human trafficking, and cartels as it diverts thousands of law enforcement personnel to Immigration and Customs Enforcement (ICE).

Market Reaction

The implications of the US intervention in Venezuela sent tremors through the markets. The price of oil declined after Trump’s announcement, with traders bracing for more supply hitting the market. West Texas Intermediate fell by over 1.5%, while the international benchmark, Brent crude, also dropped.

Criticism from Lawmakers

The idea of an invasion against Greenland faced swift bipartisan criticism 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 “demise” of NATO.

The broader geopolitical situation remains tense, with the US concurrently involved in major disputes in South America and the Arctic while implementing controversial domestic policy shifts.