Trump announces oil deal with Venezuela, claims "majority control" over more than 65 billion barrels of reserves

US President Trump announced a major oil agreement with Venezuela, a move that comes as the US-Iran war continues to put pressure on global crude oil supply.

According to Xinhua News Agency, on the evening of the 28th, Trump posted on social media that the US and Venezuela reached an oil-related agreement granting the US “majority control” over more than 65 billion barrels of Venezuela’s proven oil reserves.

Trump called the deal "the largest oil transaction in world history" and emphasized that the agreement comes at "zero cost" to US taxpayers.

He stated that the deal was negotiated by Secretary of State Marco Rubio, Secretary of Defense Pete Hegseth, and Venezuela’s interim president Delcy Rodriguez. The US also leveraged “partnerships” with several unnamed private companies to facilitate the outcome.

Although WTI crude fell by 4% this week, recording its first weekly loss in nearly three weeks, oil prices have still risen more than 24% since the outbreak of the US-Iran war.

The agreement comes against the backdrop of mounting pressure on US energy supplies.

The US-Iran war has severely hindered crude oil shipments through the Strait of Hormuz, which previously carried around 20% of global oil trade. Currently, the number of ships passing daily has plummeted from about 100 a year ago to just a handful.

At the same time, US strategic oil reserves remain critically low. Data from the Department of Energy earlier this month showed reserves had dropped below 300 million barrels, more than 100 million barrels down from early 2026, hitting their lowest level since the 1980s.

Trump said that securing control over these 65 billion barrels of reserves would more than double the size of the US’s oil stockpiles.

At the retail end, data from the American Automobile Association (AAA) showed that as of the 28th, the average US regular gasoline retail price had risen to about $4.09 per gallon, an increase of 27% year-on-year.

With the midterm elections approaching, Trump faces intense political pressure to curb energy prices—a key factor in determining whether the Republican Party can maintain full control in Washington. Trump stated that the Venezuela agreement should help lower oil prices.