US announces majority control of Venezuela's oil reserves

President Donald Trump has announced an unprecedented US move to take majority control of more than 65 billion barrels of Venezuela's proven oil reserves. The arrangement, described as a partnership with private business, is intended to revive the OPEC nation's struggling energy sector and provide a fresh crude supply to help lower American fuel prices.

In a statement on Truth Social, Trump said Secretary of State Marco Rubio and Secretary of War Pete Hegseth, working with Venezuela's interim president Delcy Rodriguez, had secured the deal at no cost to the American taxpayer. The announcement follows weeks of negotiations between Washington and Caracas over long-term access to Venezuelan oilfields, with the resulting crude supply guaranteed to the United States.

A lease model, under which fields could be auctioned to US producers, was earlier reported to be under consideration. However, the arrangement may face legal and constitutional hurdles in Venezuela, where the state retains control over core oil industry activities.

Venezuela holds the world's largest proven oil reserves but currently produces only about 1.25 million barrels per day, far below its potential after years of underinvestment, mismanagement and sanctions. Since the US removed former president Nicolas Maduro from power in January, Washington has sought a stable flow of Venezuelan crude for its refineries while encouraging American investment.

The move comes as the Trump administration faces pressure over rising gasoline prices ahead of midterm elections. Cheaper oil supplies and expanded output could ease that pressure. The US has also been exploring ways to replenish its Strategic Petroleum Reserve, including possible crude swaps with domestic producers.

Details on the structure of the agreement, the specific fields or companies involved, and how the US would exercise majority control over the reserves have not yet been disclosed.