Trump Announces Historic Oil Deal with Venezuela Amid Global Price Volatility
US President Donald Trump announced what he calls 'THE BIGGEST OIL DEAL IN WORLD HISTORY' in Venezuela, giving the US access to the country's vast oil reserves. The agreement was negotiated by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth with Venezuelan acting president Delcy Rodríguez. According to Rodríguez, the deal aims to modernize Venezuela's oil industry and make it a global energy powerhouse.
The new company formed under the deal will be given the rights to untapped oil fields for 100 years, with the US government holding a 55% effective output stake, including an ownership stake and rights to buy oil at cost. The agreement could draw $100 billion in investment into Venezuela's oil industry and yield over $209 billion in taxes for Caracas.
However, experts warn that Venezuela's dilapidated oil infrastructure will take years and billions of dollars to repair, making a substantial boost in production unlikely in the short term. Oil prices rose after the US attacked Iranian rocket launchers on the Strait of Hormuz, with the price for a barrel of U.S. oil up 1.8% to $84.94.
Venezuelans have expressed mixed reactions to the deal, with some considering it a betrayal of their government's repeated statements that Venezuelan resources are for Venezuela alone. Harvard University professor Ricardo Hausmann called it a 'shameful deal' and said Venezuelans will not respect it.