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

President Donald Trump said his administration had reached a sweeping agreement with Venezuela that could potentially open up access to vast untapped oil reserves in the South American country at cost.

Trump said in a social media post announcing the agreement on Firday (local time) it was negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth and Venezuela’s acting President Delcy Rodriguez.

“The United States of America has just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY!” Trump wrote.

Rodriguez’s government in a statement said the deal involves the development of 17 fields with a proven potential of 65 billion barrels.

It said the agreement could draw $USD100 billion in investment into Venezuela’s oil industry and yield over $USD209 billion in taxes for Caracas.

The agreement allows for the United States to partner with an unnamed private operator in Venezuela to create a new private company to take hold of the reserves, according to a U.S. official familiar with the contours of the deal.

The official, who was not authorised to comment publicly and spoke on the condition of anonymity, added that Rodriguez granted the company 100-year rights to develop the oil fields.

The deal gives the United States 55 per cent effective output of the new private company, including an ownership stake and rights to buy oil at cost.

The company would be the second largest corporate holder of proven reserves after Saudi Aramco, according to the official.

The announcement comes nearly nine months after the US military at Trump’s direction carried out an operation to capture Venezuela’s then-President Nicolas Maduro and spirit him to the United States to face federal narcoterrorism and drug trafficking charges.

Trump faces mounting pressure to address high gas prices as the war in Iran on Friday reached a six-month milestone with no conclusion in sight.

The US has tapped its strategic petroleum reserves, which in early August fell below 300 million barrels, down by more than 100 million barrels since the start of 2026.

The US-Israel war against Iran has led to a dramatic slowdown of Gulf oil moving through the Strait of Hormuz, which about 20 per cent of the world petroleum passed through prior to the conflict.

The average price of gas in the US stood at about $USD4.09 a gallon (about $AUD1.55 per litre) on Friday, according to AAA. The average price was $3.21 at the same time last year.