Trump announces ‘biggest oil deal in world history’ with Venezuela

While reviving the OPEC nation's battered energy industry, the United States has struck a accord with Caracas that would provide them control of some 65 billion barrels of Venezuela's proven oil reserves, President Donald Trump has confirmed.

Key points

• For Venezuela, Rubio remarked the agreement would bring almost $100bn in private investment, backing thousands of high-paying jobs and support rebuild the country's economy.
• In a post on Truth Social, Trump remarked the "historic transaction more than doubles American oil reserves" and "will substantially lower gas prices for all Americans".
• Venezuela holds the world's largest proven oil reserves, but produces only 1.25 million barrels per day, far below its potential after years of underinvestment, mismanagement and sanctions.
• It is anticipated to bring regarding $209bn to the state's treasury.
• Venezuelan authorities are preparing to sign agreements next week granting new oil exploration and production rights to a number of firms, particularly US firms.

"At my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business, have secured majority US control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer, " Trump wrote.

Venezuela's interim President Delcy Rodriguez welcomed the accord. It is anticipated to bring regarding $209bn to the state's treasury.

For context, the announcement followed weeks of negotiations over an agreement that would offer American businesses long-term access to a group of Venezuelan oilfields and guarantee the resulting crude supply to the US.

Sources previously informed Reuters news agency that a lease model was under consideration, with fields potentially auctioned to US producers, but the arrangement could face legal and constitutional challenges in Venezuela, where the state retains control over core oil industry activities.

For context, the new accord would represent a dramatic expansion of Washington's role in Venezuela's oil industry as the Trump administration seeks to revive the country's production and secure more crude for US refineries. Venezuela holds the world's largest proven oil reserves, but produces only 1.25 million barrels per day, far below its potential after years of underinvestment, mismanagement and sanctions.

Trump did not disclose the structure of the agreement, the fields or firms involved, nor how the US would exercise majority control over the reserves.

Secretary of State Marco Rubio described the agreement as a win for both countries, saying on X that it would secure stable, low-cost oil for the US and support lower petrol costs.

For now, trump announces 'biggest oil deal in world history' with Venezuela remains the part of the story worth watching, and further updates are likely as more details are confirmed.