Trump’s Biggest Oil Gamble: Major Venezuela Deal Unveiled

New Delhi, August 29, 2026 US President Donald Trump has announced a sweeping agreement with Venezuela that could give the United States access to large amounts of the South American nation’s untapped oil reserves at cost. The deal comes as the US faces rising fuel prices and global oil supply disruptions, making Venezuela’s vast reserves strategically important for Washington. Trump said the agreement was negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth and Venezuela’s acting President Delcy Rodriguez. In a social media post, he wrote: “The United States of America has just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY!” Rodriguez’s government said the deal covers 17 fields with a proven potential of 65 billion barrels, could attract $100 billion in investment and generate more than $209 billion in taxes for Caracas. Rodriguez said the deal “will have a significant impact on our nation's revival.” According to a US official familiar with the agreement, Washington may partner with an unnamed private operator to establish a new company in Venezuela to take control of the reserves. Oil purchased from the company would be used to replenish the US strategic petroleum reserve and for military purposes. Rubio said the agreement would bring billions in private investment to Venezuela and help lower US gas prices, adding: “This deal is a huge win for both the American and Venezuelan people.” The announcement comes amid pressure over US fuel prices, with gasoline averaging about $4.09 a gallon on Friday, compared with $3.21 a year ago. The Iran conflict has also slowed oil shipments through the Strait of Hormuz, while US strategic petroleum reserves have fallen below 300 million barrels. However, experts warn that Venezuelan oil production cannot rise quickly because years of damage to infrastructure mean that rebuilding and expansion will require billions of dollars and could take years. Venezuela has an estimated 303 billion barrels of crude oil reserves, around 17% of the global total, but produces only about 1% of the world’s oil due to its deteriorated infrastructure. The deal follows Rodriguez’s move to open the oil sector to privatization and Trump’s efforts to bring American oil companies back into the country. While the agreement could reshape Venezuela’s energy sector and strengthen US access to oil, its impact on American fuel prices is unlikely to be immediate.