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Ex-President Donald Trump has announced that Venezuela will be “handing over” around $2 billion worth of crude oil from Venezuela to the United States. This major agreement would reroute cargoes originally bound for China while allowing Venezuela avoid further oil production cuts.

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

Venezuelan government officials and the state-owned firm PDVSA offered no response on the reported agreement.

Background: An Embargo and an Arrest

Venezuela currently has huge volumes of oil loaded on tankers and held in storage that it has been unable to ship due to a embargo enacted by the Trump administration. This campaign of pressure ended with the ouster of Nicolás Maduro, who was apprehended by United States troops over the past weekend.

While high-ranking Venezuelan officials have labeled Maduro’s capture a illegal seizure and accused the US of attempting to seize the country’s vast oil reserves, Tuesday’s announcement is seen as a clear indicator that the remaining government is bowing to Trump’s demand to provide entry to US oil companies or risk more military incursion.

Parallel Ambitions: The Quest for Greenland

Simultaneously, Trump and his aides have stated they are “exploring” a “variety of possibilities” in an bid to take control of Greenland. A presidential statement on Tuesday noted that using the US military to do so is “remains a possibility”.

“President Trump has made it well known that obtaining Greenland is a national security priority of the United States, and it’s crucial to counter our adversaries in the Arctic region,” said White House press secretary Karoline Leavitt. “The president and his team are evaluating a set of options to achieve this significant foreign policy goal, and of course, using the US military is always an option at the commander-in-chief’s command.”

Leavitt’s comments came as the heads of state of leading European powers voiced resistance against Trump’s persistent desire to annex the Arctic territory.

Additional Major Updates

• Childcare Funds Frozen: The Trump administration is freezing more than $10 billion in federal child and family aid funds to five major states. The Department of Health and Human Services (HHS) cited concerns about fraud and misuse.
• Epstein Files Withheld: The Department of Justice has released less than 1% of the much-discussed Epstein files, a court filing has disclosed. Democrats have increased criticism of the administration’s “lawlessness” for keeping records under seal.
• Immigration Crackdown in Minnesota: The administration has dispatched more immigration agents to Minnesota, part of growing pressure 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 abandon his “dreams of taking over” 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 “end” of the military alliance.
• Focus Changed: Democratic senators alleged in a letter that the Trump administration has ceased work to combat child exploitation, human trafficking, and cartels as it redirects thousands of law enforcement personnel to Immigration and Customs Enforcement (ICE).

Oil Price Movement

The fallout of the US intervention in Venezuela sent shockwaves through global markets. The price of oil dropped after Trump’s announcement, with traders bracing for more supply hitting the market. US crude fell by more than 1.5 percent, while the international benchmark, Brent crude, also dropped.

Bipartisan Opposition

The idea of using the military against Greenland met with significant 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 “end” of NATO.

The wider geopolitical landscape remains fraught, with the US at once pursuing major standoffs in South America and the North Atlantic while implementing divisive domestic policy shifts.