Trump faces rising pressure over soaring gas prices as Iran war enters six months with no end in sight.
Trump announced the agreement on August 28 , calling it the “biggest oil deal in world history.”
The deal reportedly involves 65 billion barrels of Venezuelan oil reserves.
Marco Rubio, Pete Hegseth and Delcy Rodriguez were named as negotiators.
Venezuela holds an estimated 303 billion barrels of crude oil , among the largest reserves in the world.
The country accounts for roughly 17 per cent of global oil reserves .
Venezuela’s production remains low because of damaged infrastructure and years of underinvestment .
The US has been using its Strategic Petroleum Reserve amid pressure on energy prices.
The agreement could potentially bring greater US involvement and investment in Venezuela’s oil industry .
The announcement comes months after Nicolás Maduro was removed and taken to the United States to face federal charges.
Any increase in Venezuelan production could have wider implications for global oil supplies and fuel prices .
Trump Says US Reaches ‘Biggest Oil Deal’ With Venezuela, Claims Control Over 65 Billion Barrels
Washington: US President Donald Trump on Friday, August 28, announced that the United States has reached an agreement with Venezuela that would give Washington control over 65 billion barrels of the South American nation’s oil reserves.
Trump made the announcement in a post on social media, describing the arrangement as the “biggest oil deal in world history.” According to Trump, the agreement was negotiated by US Secretary of State Marco Rubio, Defense Secretary Pete Hegseth and Venezuela’s interim President Delcy Rodriguez.
Trump wrote.
The announcement marks a major development in Washington’s relationship with Caracas and comes nearly nine months after the US military, acting on Trump’s orders, carried out an operation to capture Venezuelan President Nicolás Maduro. Maduro was subsequently taken to the United States, where he is facing federal charges related to narcoterrorism and drug trafficking.
The latest agreement could potentially reshape Venezuela’s oil industry, which has struggled for years because of declining investment, damaged infrastructure and economic instability.
The announcement also comes at a politically sensitive time for Trump, as Americans continue to face pressure from rising fuel prices.
The war in Iran has now reached the six-month mark, with no clear end to the conflict in sight. The prolonged fighting has created uncertainty in global energy markets and added pressure on oil supplies and prices.
The United States has already drawn heavily from its Strategic Petroleum Reserve to help manage energy pressures. The reserve fell below 300 million barrels in early August, representing a decline of more than 100 million barrels since the beginning of 2026.
For the Trump administration, access to Venezuelan oil could therefore become increasingly important. Venezuela possesses some of the largest known oil reserves on the planet, giving the country enormous potential if production can be restored.
Trump had already suggested in the aftermath of Maduro’s removal in January that American oil companies could return to Venezuela and help develop its oil sector.
The president has also repeatedly accused Venezuela of taking US oil following policies introduced under former Venezuelan President Hugo Chavez. Chavez’s government nationalized hundreds of foreign-owned assets decades ago, including properties and operations belonging to American oil companies.
Venezuela’s oil reserves are estimated at around 303 billion barrels of crude, according to the US Energy Information Administration. That figure represents roughly 17 per cent of the world’s total oil reserves.
Unlike some emerging oil-producing regions, Venezuela does not need to spend years searching for major undiscovered deposits. Much of the country’s oil resources have already been identified and mapped by geologists.
The bigger challenge is turning those reserves into actual production.
Years of underinvestment, deteriorating oil facilities and aging infrastructure have significantly reduced Venezuela’s ability to extract and process crude. Despite possessing enormous reserves, the country currently produces only around 1 per cent of the world’s oil.
The proposed US-Venezuela agreement could therefore have consequences far beyond the two countries. If American companies return and investment increases, Venezuela could potentially raise production and become a more significant supplier to global markets.
At the same time, the deal is likely to attract close attention because of the political and economic history between Washington and Caracas. Questions are expected to emerge over how control of the reserves would work, how profits would be divided and what role Venezuelan authorities and American energy companies would play.