New Delhi: Tensions between the US and Iran have persisted for six months. With no agreement in sight between the two nations, the situation remains volatile. The threat of war between the US and Iran is disrupting crude oil trade, causing petrol and diesel prices to rise. Amidst this, the US has finalised a major deal regarding Venezuela’s crude oil reserves.
This agreement will give the US control over Venezuela’s oil reserves, estimated at around 65 billion barrels. US President Donald Trump himself publicly announced this information via a social media post. This significant deal comes against the backdrop of deteriorating conditions in the Middle East and will enable the US to increase oil production in the market.
US President Makes a Major Claim
US President Donald Trump claimed on Saturday that the US has struck a crucial agreement with Venezuela. The US will now control approximately 65 billion barrels of Venezuelan oil reserves. In a social media post, Trump stated that the agreement was reached following discussions between US Secretary of State Marco Rubio, Secretary of Defence Hegseth, and Venezuelan official Delcy Rodríguez.
Donald Trump hailed this as the world’s largest oil deal. Trump wrote on social media, “The United States has just struck an agreement with Venezuela, the biggest oil deal in world history.” This announcement came at a time when the US military, acting on Trump’s orders, had launched an operation to arrest Venezuelan President Nicolás Maduro and bring him to the US. The move was intended to facilitate federal charges against him for narco-terrorism and drug trafficking.
Rising Price Pressure on Donald Trump
Did you know that President Donald Trump is facing mounting pressure due to rising gas prices in the US? A conflict involving Iran has also been ongoing for about six months, with no signs of it ending anytime soon.
In response, the US tapped into its Strategic Petroleum Reserve, selling off enough oil to bring its inventory below 300 million barrels by early August. After the push to oust Maduro from power began in January, Trump had spoken of sending US oil companies back to Venezuela and utilising the country’s oil reserves.
US President Donald Trump had accused Venezuela of stealing American oil, specifically referring to actions taken decades ago by former Venezuelan President Hugo Chávez, who nationalised hundreds of foreign assets, including those belonging to US oil companies. Venezuela possesses one of the world’s largest oil reserves, with approximately 303 billion barrels of crude oil lying underground.
According to the US Energy Information Administration, this accounts for about 17 per cent of the global total. Experts note that unlike other parts of the world where geologists must search for untapped oil, Venezuela’s underground reserves have largely already been identified and mapped. However, due to poor infrastructure, the country produces only 1% of the world’s oil.
