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Ex-President Donald Trump has stated that Venezuela will be “transferring” around $2 billion worth of Venezuelan crude to the United States of America. This key deal would redirect shipments originally destined for China while potentially helping Venezuela sidestep further oil production cuts.

“This Petroleum will be sold at its current market value, and that money will be managed by me, as the President of the United States of America, to make certain it is used to benefit the people of Venezuela and the United States!” Trump stated in an online post.

Authorities in Venezuela and the national oil company PDVSA did not provide comment on the supposed agreement.

Context: An Embargo and an Arrest

Venezuela currently has millions of barrels of oil aboard tankers and in onshore tanks that it has been unable to ship due to a blockade ordered by the Trump administration. This pressure campaign ended with the removal of Nicolás Maduro, who was captured by US forces over the past weekend.

While senior Venezuelan officials have described Maduro’s capture a abduction and alleged the US of trying to steal the country’s immense oil reserves, Tuesday’s declaration is seen as a powerful signal that the interim government is responding to Trump’s ultimatum to grant access to US oil companies or be threatened with additional military intervention.

Another Goal: The Pursuit of Greenland

Simultaneously, Trump and his team have stated they are “examining” a “variety of possibilities” in an bid to obtain Greenland. A presidential statement on Tuesday noted that using the US military to do so is “remains a possibility”.

“President Trump has made it well known that obtaining Greenland is a vital security interest of the United States, and it’s essential to thwart our adversaries 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, utilizing the US military is one available path at the commander-in-chief’s discretion.”

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

Further Significant Events

• Family Assistance Blocked: The Trump administration is freezing more than $10 billion in federal childcare and family assistance funds to California, Colorado, Illinois, Minnesota, and New York. The Department of Health and Human Services (HHS) cited issues regarding fraud and misuse.
• Epstein Files Withheld: The Department of Justice has released a minuscule portion of the much-discussed Epstein files, a court filing has disclosed. Democrats have stepped up criticism of the administration’s “unlawful actions” for withholding the documents.
• Immigration Crackdown in Minnesota: The administration has sent more immigration agents to Minnesota, in an extension of escalating attacks against the state and its immigrant populations. Immigration officials called it the agency’s “biggest-ever operation”.
• PM’s Strong Rebuke: Greenland’s Prime Minister, Jens-Frederik Nielsen, urged Trump to give up his “fantasies about annexation” Greenland and accused the US of “wholly inappropriate” rhetoric. The Prime Minister of Denmark, Mette Frederiksen, previously warned that a US attack on a NATO ally would mean the “collapse” of the military alliance.
• Resources Diverted from Trafficking: Democratic senators stated 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).

Financial Impact

The aftermath of the US intervention in Venezuela sent ripples through global markets. The price of oil fell after Trump’s announcement, with traders anticipating more supply hitting the market. US crude fell by 1.6%, while the international benchmark, Brent crude, also slipped.

Bipartisan Opposition

The idea of military action against Greenland faced swift cross-party pushback from US legislators. Democratic 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 “the right course”, and other Republican senators warned it could lead to the “collapse” of NATO.

The international diplomatic landscape remains fraught, with the US simultaneously engaging in major disputes in South America and the Arctic while implementing divisive domestic policy shifts.