New York, Aug 2026 : US President Donald Trump has announced that the United States and Venezuela have reached what he described as the “biggest oil deal in world history”, potentially giving American companies a major role in developing Venezuela’s vast petroleum reserves.
Trump made the announcement in a post on Truth Social, claiming that the United States, working with private businesses, had secured “majority U.S. control” of more than 65 billion barrels of proven oil reserves in Venezuela without any cost to American taxpayers.
“The United States of America has just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY!” Trump wrote.
According to Trump, the agreement would more than double US oil reserves, significantly increase the country’s oil supply and eventually help reduce gasoline prices for American consumers.
Trump’s announcement comes amid heightened concerns over energy prices in the United States following the outbreak of the Iran conflict in late February. US oil prices have risen sharply since the escalation, increasing concerns over inflation and the wider impact of higher energy costs.
Venezuela also confirmed the agreement on Friday, describing it as a “historic agreement” aimed at promoting investment in the recovery and reconstruction of strategic infrastructure in its hydrocarbons industry.
In a statement, Venezuela’s acting president Delcy Rodriguez said the agreement would strengthen bilateral relations and facilitate a major flow of investment into Venezuela’s energy sector.
The Venezuelan government said the agreement would allow the country to substantially increase oil production through greater participation by private operators. It involves the development of 17 strategic oil fields, which together have a proven potential of around 65 billion barrels.
The agreement is expected to involve more than $100 billion in investment, while Venezuela said it could generate more than $209 billion in tax revenues for the state.
Venezuela possesses the world’s largest proven oil reserves, making its energy sector strategically important for global oil markets. However, years of economic crisis, sanctions, underinvestment and deteriorating infrastructure have constrained the country’s ability to fully exploit its petroleum resources.
The latest agreement signals a potentially major shift in Venezuela’s oil industry by opening greater space for private investment and foreign participation.
The announcement follows significant political and economic developments between Washington and Caracas earlier this year. On January 3, US military forces launched a large-scale operation in Venezuela and forcibly seized Venezuelan President Nicolas Maduro and his wife before transporting them to New York.
Later, on January 29, Rodriguez announced approval of a partial reform of Venezuela’s hydrocarbons law aimed at allowing greater private participation in the country’s oil sector.
The newly announced agreement could therefore mark a significant expansion of that policy, potentially bringing substantial foreign capital and technical expertise into Venezuela’s energy industry.
While Trump presented the deal as a major boost for US energy security and American consumers, its implementation, investment structure and the precise nature of US control over Venezuelan reserves will determine its long-term economic and geopolitical impact.
