The United States has entered an agreement with Venezuela granting control over 65 billion barrels of oil reserves, the largest such deal in history, aimed at stabilizing global energy markets amid the ongoing Iran conflict and rising US fuel prices. The deal follows the January 2026 US operation that detained former President Nicolas Maduro, and involves a private sector partnership not detailed by the White House.
President Donald Trump announced the agreement on August 28, 2026, negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Venezuela’s interim President Delcy Rodriguez. The agreement targets development of 17 strategic fields to increase production from 1.25 million barrels per day, with Venezuela projecting $209 billion in tax revenue and $100 billion in private investment.
The deal seeks to diversify US oil supplies strained by Gulf disruptions and low strategic reserve levels, with Trump citing potential for lower gasoline prices. However, analysts highlight legal uncertainties under Venezuela’s constitution and the years-long timeline required to rebuild battered infrastructure, complicating near-term market impacts.
Venezuela’s interim leader hailed the agreement as critical for economic recovery, while US officials framed it as a strategic win. Disagreements persist over implementation, including concerns from former ExxonMobil CEO Darren Woods about investment risks and unclear operational structures for US control over the reserves.