Nearly nine months after ordering a U.S. military operation to capture Venezuelan sitting president Nicolás Maduro on federal narcoterrorism and drug trafficking charges, former President Donald Trump made a bombshell announcement Friday: the United States has struck a deal with Venezuela’s US-aligned interim government to take control of 65 billion barrels of the South American nation’s proven crude reserves.
In a social media post, Trump framed the arrangement as the single largest oil agreement in global history, noting it was negotiated by U.S. Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Venezuela’s interim President Delcy Rodriguez. The Maduro-aligned Venezuelan government did not immediately issue a response to requests for comment, and the White House also declined to elaborate on key details including which private sector partners would be involved in the deal, or how operational control of the reserves would be transferred.
The announcement comes at a moment of intense political pressure for the Trump administration, as the U.S.-Israel war on Iran passes the six-month mark with no end to conflict in sight. The ongoing hostilities have severely disrupted global oil supplies, cutting off a large share of Gulf crude that once moved through the Strait of Hormuz — a chokepoint that carried roughly 20% of the world’s petroleum supplies before the conflict broke out.
Domestically, the supply crunch has pushed U.S. gasoline prices sharply higher: AAA data puts the national average for a gallon of regular gas at $4.09 as of Friday, a steep jump from $3.21 per gallon during the same period last year. To offset market volatility, the Trump administration has drawn heavily from the nation’s Strategic Petroleum Reserve, which dropped below 300 million barrels in early August. That marks a decline of more than 100 million barrels since the start of 2026, leaving the reserve at its lowest level in decades.
Trump only alluded to the deal’s structure as a private partnership in his post, but industry experts warn that persuading major U.S. oil firms to ramp up operations in Venezuela will face significant obstacles. Decades of underinvestment and political upheaval have left the country’s oil extraction and transport infrastructure severely dilapidated, and many major operators still carry bad memories of past nationalization efforts.
Shortly after Maduro was ousted from power, Trump hosted top oil industry executives at the White House to urge a rapid return to Venezuelan operations. While many firms expressed preliminary interest in the massive reserve potential, leadership remained cautious. Darren Woods, CEO of ExxonMobil — the United States’ largest domestic oil company — publicly characterized Venezuela as “un-investable” in the immediate aftermath of the regime change.
Despite these headwinds, the Trump administration has pushed forward with the agreement, arguing that past Venezuelan governments seized U.S. corporate assets decades ago when former President Hugo Chavez completed the nationalization of hundreds of foreign-owned oil holdings, including assets belonging to major American energy firms. The administration claims it has restored sufficient stability to Venezuela to open the sector for foreign investment, a claim echoed by Rodriguez’s interim government. One of Rodriguez’s first policy moves after taking power was signing legislation that reverses the core socialist principle of state control over oil that defined Venezuelan policy for more than two decades, fully opening the sector to private foreign investment.
Appearing on the social platform X, Rubio framed the agreement as a mutually beneficial breakthrough, saying it would bring $100 billion in private investment into Venezuela while driving down domestic gasoline prices for U.S. consumers. “This deal is a huge win for both the American and Venezuelan people,” Rubio wrote.
Venezuela already holds one of the largest proven crude reserve bases in the world. Data from the U.S. Energy Information Administration puts the country’s total in-ground reserves at 303 billion barrels, equal to roughly 17% of global proven supplies. Unlike most other major oil-producing regions, nearly all of Venezuela’s untapped reserves are already mapped and confirmed, eliminating the high costs of exploratory drilling. Yet due to decades of crumbling infrastructure and mismanagement, the nation currently produces only around 1% of the world’s total annual crude output, leaving massive room for expansion if new investment is successfully deployed.