President Donald Trump announced a deal with Venezuela giving the United States control of more than 65 billion barrels of proven oil reserves.
The transaction will more than double American oil reserves and significantly reduce domestic gas prices, Trump said in a social media statement on Friday evening. He added that the agreement comes at no cost to the American taxpayer and will strengthen relations between the two countries.
Trump credited Secretary of State Marco Rubio and Secretary of Defense Pete Hegseth with negotiating the agreement alongside Venezuela's Interim President Delcy Rodriguez and private sector businesses. News outlet Axios reported that major American oil companies are among the private firms participating in the arrangement.
Writing on Truth Social, Trump claimed he landed the "biggest oil deal in world history." He stated: "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." He added: "This Transaction will greatly strengthen the already growing relationship between Venezuela and the United States!"
The accord marks the second deal Trump has struck with the new Venezuelan administration since former dictator Nicolas Maduro was deposed during Operation Absolute Resolve in early January. Trump has openly sought control over Venezuela's vast energy reserves following the late-night military operation, confirming that extracting crude from the oil-rich South American nation was part of the objective.
Rodriguez previously served as Minister of Petroleum and Hydrocarbons under Maduro before assuming the role of interim president. In one of her first official actions after taking power in Caracas, she signed legislation opening the national oil sector to privatization, reversing a bedrock tenet of the self-proclaimed socialist movement that had governed Venezuela for more than two decades.
High gas prices and strategic reserves
In a post on X, Secretary of State Rubio called the deal "a huge win for both the American and Venezuelan people." He wrote: "It demonstrates how President Trump's bold foreign policy is driving America First wins: securing stable reserves and low-cost oil in our Hemisphere and lowering gas prices here at home."
Rubio added: "For the Venezuelan people, this deal will bring nearly $100 billion in private investment, support thousands of high-paying jobs, and drive the reconstruction of Venezuela's economy."
The announcement comes as the White House faces mounting pressure to address high gas prices as the war in Iran reaches a six-month milestone with no conclusion in sight. Military conflict involving the US, Israel, and Iran has severely disrupted commercial shipping and energy transport across the region.
The conflict has led to a dramatic slowdown of Gulf oil moving through the Strait of Hormuz, a critical maritime choke point through which about 20 percent of world petroleum passed prior to the conflict. Consequently, the average price of gas in the US stood at about $4.09 a gallon on Friday, according to AAA, up from $3.21 at the same time last year.
To cushion consumers against rising energy costs, the US government has repeatedly drawn down its Strategic Petroleum Reserve. By early August, emergency reserves fell below 300 million barrels, marking a total decline of more than 100 million barrels since the start of 2026.
Oil industry caution and infrastructure challenge
Trump has argued that Venezuela stole US oil when former Venezuelan President Hugo Chavez moved decades ago to nationalize hundreds of foreign-owned assets, including those owned by American oil companies. Chavez, who governed the South American nation until his death in 2013, expropriated major foreign energy holdings during his tenure.
In the days following Maduro's ouster in January, Trump floated the idea of US oil companies returning to Venezuela to tap its oil reserves. Days later, he gathered top energy executives at the White House and called on them to rush back into the country.
Executives expressed interest in the opportunity but also urged caution given past experience in the country and decades of badly damaged infrastructure. Darren Woods, CEO of ExxonMobil, the largest US oil company, said at that moment he saw the country as "un-investable."
Despite industry hesitation, Trump has insisted that his administration has brought a measure of stability to Venezuela. However, analysts note that persuading large energy firms to reinvest heavily faces strong headwinds due to dilapidated facilities across the nation's oilfields.
Venezuela holds the largest proven crude oil reserves in the world, with an estimated 303 billion barrels of crude oil in the ground. According to the US Energy Information Administration, that represents about 17 percent of the world's total supply.
Unlike other parts of the world where geologists have to search for untapped oil, experts say the reserves under Venezuela's soil are largely mapped and known. But because of dilapidated infrastructure, the country currently produces only about one percent of the world's oil.
Specific details regarding how the private sector partnership will work were not provided in Trump's social media post on Friday evening. The White House did not immediately reply to requests for comment regarding the private sector partners involved in the deal, and the Venezuelan government's press office also did not immediately respond.
