Trump Touts Deal for US Control Over Venezuela's 65 Billion Barrel Oil Reserve

US President Donald Trump has announced a deal that gives the country majority control over 65 billion barrels of Venezuelan oil, claiming it will significantly lower gas prices for Americans. The agreement with Venezuela's government grants the US a 55% effective interest in the output of a new private company formed to manage the reserves.

The breakthrough comes as global energy markets face disruptions due to the ongoing Iran conflict, causing gas prices at the pump to rise to an average of $4.08 per gallon in the US, up from $3.20 a year ago according to AAA.

While the deal does not immediately grant access to 35.75 billion barrels of oil, the 55% interest applies to the oil produced by 17 Venezuelan fields covered by the agreement. The US will also be able to purchase Venezuelan oil at cost, potentially giving American buyers cheaper crude once production increases.