Trump Strikes A Deal With Venezuela & El-Sayed and Talarico Make Waves | 8.31.26

President Trump has struck a historic oil deal with Venezuela, a move that could significantly impact global oil markets and geopolitical dynamics. This agreement comes amidst new US strikes on Iranian targets and ongoing rescue efforts in Nepal following a devastating glacier collapse. Meanwhile, two months out from the election, key Senate races in Michigan and Texas are drawing national attention due to controversial candidates and their potential to shift the balance of power.

Venezuela Oil Deal: A Game Changer?

President Trump's administration has finalized what is being touted as the largest oil deal in history with Venezuela. For decades, Venezuela has held the world's largest oil reserves, yet its socialist leaders have severely restricted access for Western countries. Sanctions against the regime further prevented American companies from accessing this vast resource. The country's economic collapse, exacerbated by years of socialist mismanagement, rendered it incapable of tapping into these reserves effectively. Despite holding 17% of the world's oil reserves, Venezuela previously accounted for only about 1% of global oil exports.

This all changed following the capture of Nicolás Maduro in January. While technically arrested on charges of narcoterorism, the Trump administration's motivations for this operation were heavily tied to oil. They sought a Venezuelan leader open to partnering with the US. President Trump publicly stated his desire for "total access" to Venezuela's oil industry, warning that non-compliance would result in a "very big price." Since then, the new Venezuelan President, Delcy Rodriguez, has complied, working with the US on several deals, with this being the most significant.

While the official text of the agreement has not yet been released, reports indicate it is enormous. According to President Trump, it grants the US majority control over 65 billion barrels of proven oil reserves. To put this in perspective, this is nearly as much oil as the US currently holds in all its proven oil reserves combined. Trump stated on Truth Social that the deal "greatly increases our oil supply and will substantially lower gas prices for all Americans long into the future" at no cost to the American taxpayer. President Rodriguez echoed this sentiment, saying it would have a "significant impact on our nation's revival." She explained it in layman's terms: "Each party contributes what it does best. Venezuela contributes oil, the US contributes the capital and technology needed to recover and develop those assets."

This is a unique arrangement because the US is taking on an investment role. Trump was reportedly dissatisfied with the pace of American oil companies investing in Venezuela after Maduro's ouster, leading him to take the rare step of making the federal government itself the key investor. The Pentagon's Office of Strategic Capital will partner with an existing private Venezuelan oil company to finance the development of 17 oil fields. While details are still murky, the New York Times reports that the US will receive preferential access to purchase oil from these fields at a discount and take home 55% of the profits from the joint venture. American consumers are expected to benefit from lower prices at the pump as this influx of oil raises supply.