President Trump says U.S. has made deal with Venezuela to take control of 65 billion barrels of oil
FILE – President Donald Trump gestures as he boards Air Force One, Monday, June 15, 2026, at Joint Base Andrews, Md. (AP Photo/Julia Demaree Nikhinson)
WASHINGTON (AP) — President Trump says his administration has entered an agreement with Venezuela that could give the U.S. access to vast amounts of untapped oil reserves.
Trump said it was negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth and Venezuela’s acting President Delcy Rodríguez.
“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 in a social media post.
Rodríguez’s government in a statement said the deal involves the development of 17 fields with a proven potential of 65 billion barrels. It said the agreement could draw $100 billion in investment into Venezuela’s oil industry and yield over $209 billion in taxes for Caracas.
Rodríguez in a posting on Telegram predicted the deal “will have a significant impact on our nation’s revival.”
The agreement allows for the United States to partner with an unnamed private operator in Venezuela to create a new private company to take hold of the reserves, according to a U.S. official familiar with the contours of the deal.
The official, who was not authorized to comment publicly and spoke on the condition of anonymity, added that Rodríguez granted the company 100-year rights to develop the oil fields.
The deal gives the United States 55% effective output of the new private company — including an ownership stake and rights to buy oil at cost. The company would be the second largest corporate holder of proven reserves after Saudi Aramco, according to the official.
Trump faces mounting pressure to address high gas prices as the war in Iran has reached a six-month milestone with no conclusion in sight. The U.S. has tapped its strategic petroleum reserves, which in early August fell below 300 million barrels, down by more than 100 million barrels since the start of 2026.
The U.S.-Israel war against Iran has led to a dramatic slowdown of Gulf oil moving through the Strait of Hormuz, which about 20% of the world petroleum passed through prior to the conflict.
The average price of gas in the U.S. stood at about $4.09 a gallon today, according to AAA. The average price was $3.21 at the same time last year.
A significant drop in U.S. gas prices tied to the agreement should not be expected immediately. Experts have repeatedly warned that a substantial boost in Venezuelan oil production will not happen quickly as repairing and expanding infrastructure takes years and requires billions of dollars.
(Copyright 2026 The Associated Press contributed to this report. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
