Trump announces 'biggest oil deal in world history' with Venezuela

US President Donald Trump on Friday (local time) announced the "biggest oil deal in world history" with Venezuela.

The landmark agreement with Venezuela will give the US majority control over more than 65 billion barrels of proven crude oil reserves.

"The United States of America has just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY! At my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business, have secured majority U.S. control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer," he said.

According to the president, the agreement was secured "at no cost to the American Taxpayer" and will "more than double" total American oil reserves. The administration claims the massive influx to the US oil supply will drive down domestic gasoline prices long-term while putting Venezuela's economy on a path toward economic recovery.

"This Historic Transaction MORE THAN DOUBLES American Oil Reserves, greatly increases our Oil Supply, and will substantially lower Gas Prices for all Americans, long into the future, while helping to continue to set Venezuela on a course toward Tremendous Success and Great Prosperity. This Transaction will greatly strengthen the already growing relationship between Venezuela and the United States! Thank you for your attention to this groundbreaking matter," added Trump.

The announcement comes following months of intense U.S. diplomatic pressure, sanctions enforcement, and direct oversight of Venezuelan oil exports aimed at stabilising the South American nation's energy sector.

The deal comes nine months after a U.S. military operation ordered by Trump captured Venezuelan leader Nicolas Maduro and transferred him to the U.S. on federal narcoterrorism and drug trafficking charges.

It also comes as the administration faces pressure on gas prices while the war in Iran hits six months, and after the U.S. Strategic Petroleum Reserve dropped below 300 million barrels in early August, down over 100 million barrels since January.

Trump had previously floated a return of U.S. oil companies to Venezuela following Maduro's ouster, arguing U.S. assets were taken when Hugo Chavez nationalised foreign-owned properties.

Venezuela holds an estimated 303 billion barrels of crude, or about 17% of world supply per the EIA, though it produces only about 1% of global output due to dilapidated infrastructure.

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