President Donald Trump announced a major agreement with Venezuela to gain control of 65 billion barrels of the country’s proven oil reserves, calling it a ‘historic’ deal. The agreement, hailed as a win for both the U.S. and Venezuela, is expected to boost American oil reserves and help lower domestic gas prices, according to reports from the BBC and NewsCord.

Deal Details and Claims of Economic Benefits

Trump stated the deal would more than double U.S. oil reserves and help reduce fuel prices for American consumers. According to BBC, the U.S. will retain 55% control of a joint venture with an ‘experienced private operator in Venezuela,’ as confirmed by a U.S. official. The deal involves the development of 17 strategic oil fields with a potential of 65 billion barrels, alongside an investment of more than $100 billion and $209 billion in state taxes, according to Venezuela’s interim president Delcy Rodriguez.

Secretary of State Marco Rubio described the deal as a ‘huge win for both the American and Venezuelan people,’ adding it would bring nearly $100 billion in private investment, support thousands of high-paying jobs, and aid in the reconstruction of Venezuela’s economy. Rodriguez also emphasized the deal’s potential to boost economic growth, energy security across the hemisphere, and balance in international oil markets.

Political Context and Public Statements

Trump highlighted the role of Secretary of State Marco Rubio and Defense Secretary Pete Hegseth in finalizing the deal through a partnership with private businesses, but he reiterated that the agreement was reached without any cost to the American taxpayer. Rodriguez, who became interim president after the U.S. captured Venezuela’s former leader, Nicolás Maduro, said the deal would significantly impact Venezuela’s economic revival.

Rubio also noted the deal would help secure stable oil reserves and lower fuel costs for Americans. Reuters reported that U.S. companies are expected to lead the revitalization of Venezuela’s energy industry, providing crude to help stabilize U.S. fuel prices amid ongoing domestic and international challenges.

Future Steps and Broader Implications

Venezuelan officials are preparing to sign new agreements next week to grant oil exploration and production rights to several companies, particularly U.S. firms, as reported by Reuters. The development of the 17 strategic oil fields is expected to significantly increase Venezuela’s production capacity.

The deal is also expected to bring in substantial tax revenue for Venezuela; According to Rodriguez, the $209 billion in taxes would support the country’s economic recovery and modernization. However, no further details were released regarding the terms of the U.S. involvement or any potential commitments.

Trump’s announcement comes amid pressure to address rising gasoline prices in the U.S., particularly following recent tensions with Iran. The administration has framed the deal as a win for both nations, emphasizing economic cooperation and energy security without placing a financial burden on American taxpayers.