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Ex-President Donald Trump has declared that Venezuela will be “handing over” around $2 billion worth of Venezuelan oil to the United States of America. This key deal would redirect shipments originally destined for China while assisting Venezuela avoid further oil production cuts.

“This Petroleum will be sold at its Market Price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States!” Trump wrote in an online post.

Authorities in Venezuela and the state-owned firm PDVSA offered no response on the reported agreement.

Context: An Embargo and an Arrest

Venezuela currently has vast quantities of oil aboard tankers and in storage tanks that it has been blocked from exporting due to a naval blockade imposed by the Trump administration. This campaign of pressure reached its peak with the removal of Nicolás Maduro, who was apprehended by US forces over the recent weekend.

While high-ranking Venezuelan officials have called Maduro’s capture a kidnapping and accused the US of trying to steal the country’s enormous oil reserves, Tuesday’s declaration is seen as a strong sign that the current government is complying with Trump’s ultimatum to provide entry to US oil companies or face the risk of more military action.

A Separate Agenda: The Pursuit of Greenland

At the same time, Trump and his advisers have stated they are “exploring” a “variety of possibilities” in an effort to take control of Greenland. A presidential statement on Tuesday noted that using the US military to do so is “remains a possibility”.

“President Trump has made it abundantly clear that acquiring Greenland is a vital security interest of the United States, and it’s crucial to thwart our opponents in the Arctic region,” said White House press secretary Karoline Leavitt. “The president and his team are evaluating a range of options to pursue this important foreign policy goal, and of course, using the US military is one available path at the commander-in-chief’s command.”

Leavitt’s comments came as the heads of state of leading European powers voiced resistance against Trump’s persistent desire to take over the Arctic territory.

Additional Major Updates

• Childcare Funds Frozen: The Trump administration is withholding more than $10 billion in federal childcare and family support funds to California, Colorado, Illinois, Minnesota, and New York. The Department of Health and Human Services (HHS) cited concerns about fraud and misuse.
• Sealed Records: The Department of Justice has released a minuscule portion of the so-called Epstein files, a court filing has shown. Democrats have increased criticism of the administration’s “disregard for the law” for keeping records under seal.
• Agents Deployed to Minnesota: The administration has sent more immigration agents to Minnesota, part of growing pressure against the state and its immigrant populations. Immigration officials called it the agency’s “biggest-ever operation”.
• Clear Opposition from Greenland: Greenland’s Prime Minister, Jens-Frederik Nielsen, urged Trump to abandon his “fantasies about annexation” Greenland and accused the US of “completely and utterly unacceptable” rhetoric. The Prime Minister of Denmark, Mette Frederiksen, previously warned that a US attack on a NATO ally would mean the “demise” of the military alliance.
• Resources Diverted from Trafficking: Democratic senators claimed in a letter that the Trump administration has ceased work to combat exploitation and trafficking as it diverts thousands of law enforcement personnel to Immigration and Customs Enforcement (ICE).

Market Reaction

The fallout of the US intervention in Venezuela sent tremors through financial markets. The price of oil dropped after Trump’s announcement, with traders anticipating more supply becoming available. US crude fell by more than 1.5 percent, while the international benchmark, Brent crude, also slipped.

Bipartisan Opposition

The idea of an invasion against Greenland met with significant cross-party criticism from US legislators. Democrat Senator Ruben Gallego vowed to introduce a resolution to block such a move. Republican House Speaker Mike Johnson said he did not think military action was “appropriate”, and other Republican senators warned it could lead to the “collapse” of NATO.

The broader diplomatic situation remains tense, with the US concurrently involved in major confrontations in Venezuela and the Arctic while carrying out contentious domestic policy shifts.