Trump pushes controversial Venezuelan oil deal amid legal and historical concerns
Donald Trump is pursuing a long-term lease to extract Venezuelan oil, linking the scheme to a disputed Venezuelan official and a businessman wanted for embezzlement.
Donald Trump announced a deal to lease Venezuelan oil fields, claiming it will replenish the Strategic Petroleum Reserve. The agreement, said to be with Delcy Rodríguez, the de-facto leader after the disputed election, would grant access to about 65 billion barrels of heavy crude. The contract has been given to Alejandro Betancourt López, a billionaire with a Swiss-issued arrest warrant for alleged embezzlement.
U.S. officials and analysts argue the scheme lacks congressional authorization, mirrors earlier U.S. interventions that sparked unrest, and risks costly military involvement. Reports indicate $13 billion from seized oil sales has vanished, and the plan faces opposition from both parties in Congress. The controversy highlights concerns over colonial-style exploitation and potential misuse of taxpayer funds.
Why it matters
The deal could involve U.S. military action, large sums of public money, and set a precedent for foreign resource grabs.
How this story developed
- Aug 23 Iran readies major fuel price hike amid US sanctions and war pressures
- Aug 28 Treasury Secretary Scott Bessent unveiled the new sanctions package.
- Aug 30 Treasury filed a draft regulation that could block the UAE branches of Banque Misr from U.S. correspondent banking.
- Sep 2 Senior advisors to President Trump are urging the administration to limit the Iran war until the November 3 elections, relying on economic pressure rather than expanded military action.
- Sep 2 Daily fuel deficit of about 15 million litres reported.
- Sep 2 Diesel averaged $5.68 a gallon, the steepest level since July 2022, and President Trump met refinery leaders to push for lower pump prices.
- Sep 3 Trump advisers have begun actively lobbying to limit escalation of the Iran war before the midterm elections.
- Sep 3 During a White House briefing, JD Vance said there is no active shooting between U.S. and Iranian forces and described the hostilities as limited flare-ups. He cited past strikes that destroyed Iran’s nuclear facilities and defense industry but refused to set a date for ending the conflict, noting the U.S. must continue protecting commercial shipping. The remarks came after President Donald Trump dismissed recent Iranian attacks as a "love tap" and warned of further strikes.
- Sep 4 Vance announced the U.S. will not negotiate with Iran until attacks on commercial shipping cease.
- Sep 4 Iran has begun testing methanol as an oxygenate in its gasoline blend.
- Sep 4 The United Arab Emirates announced a full stop to commercial and financial dealings with Iran.
- Sep 4 US retail diesel rose to a record, threatening to further spike energy-driven inflation as wars in Iran and Russia roil the market.
- Sep 4 Trump convened a meeting with refiners at the White House to discuss pump prices.
- Sep 4 Vance is slated to speak on inflation and Iran at his first press briefing since July.
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