President Donald Trump announced on Friday that the United States has reached a major oil agreement with Venezuela, securing majority control of more than 65 billion barrels of the country's proven oil reserves, which he described as 'THE BIGGEST OIL DEAL IN WORLD HISTORY' [1][2]. Trump stated that the deal was achieved through coordination with Secretary of State Marco Rubio, Secretary of War Pete Hegseth, Venezuelan interim President Delcy Rodriguez, and private business partners, emphasizing that it comes 'at no cost to the American Taxpayer' [1][2].
According to Trump, the agreement more than doubles American oil reserves and is expected to 'substantially lower Gas Prices for all Americans, long into the future' [1][2]. Secretary of State Marco Rubio called the deal a 'huge win' for both countries, highlighting that it would secure 'stable reserves and low-cost oil' in the Western Hemisphere, lower U.S. gas prices, bring nearly $100 billion in private investment to Venezuela, support thousands of high-paying jobs, and help rebuild Venezuela's economy [1]. Venezuelan interim President Delcy Rodriguez stated that the agreement will allow for a significant increase in oil production through the development of 17 strategic fields with a proven potential of 65 billion barrels of oil and more than $100 billion in investment [1].
The deal comes amid global crude market turmoil caused by the ongoing U.S. war with Iran, which has disrupted transit in the Strait of Hormuz and contributed to a 24% jump in crude prices since the conflict began [2]. The average price of a gallon of gas in the U.S. reached around $4.09 on Friday, a 27% increase year over year, according to AAA [2]. Trump indicated that the Venezuela deal should help bring down prices at the pump [2]. West Texas Intermediate crude prices fell 4% this week, marking the first losing week in three, but remain elevated due to the conflict [2].
The agreement follows the U.S.'s January attack on Venezuela, during which then-President Nicolás Maduro and his wife, Cilia Flores, were captured [2]. Trump emphasized that the transaction will 'greatly strengthen the already growing relationship between Venezuela and the United States' [2]. Rodriguez added that the investments will contribute to the recovery and modernization of Venezuela's oil industry, economic growth, energy security in the hemisphere, and greater balance in international markets [1].
CONCLUSION
The U.S.-Venezuela oil deal marks a significant shift in global energy dynamics, with the U.S. securing majority control of a vast oil reserve and promising to lower domestic gas prices. The agreement is expected to bring substantial investment to Venezuela and stabilize oil markets amid ongoing geopolitical tensions. Market participants are likely to view the deal as a major development with high impact on both energy prices and international relations.