Trump Secures US Control of 65 Billion Barrels of Venezuelan Oil

Trump faces mounting pressure to address high US gas prices as the war against Iran reaches a six-month mark. The conflict has slowed Gulf oil moving through the Strait of Hormuz, which handled about 20% of the world's petroleum before the fighting. The average US gas price stood at $4.09 a gallon Friday, up from $3.21 a year earlier, according to the American Automobile Association.

The US has tapped its strategic petroleum reserves, which fell below 300 million barrels in early August, down more than 100 million barrels since the start of 2026.

Persuading major US oil companies to return to Venezuela could be difficult given the unrest and decades of badly damaged infrastructure. Exxon's Woods called the country "un-investable" after Maduro's fall. But Trump argued his administration has brought stability. The deal, if executed, would add a significant new supply source at a time when the US is drawing down emergency stockpiles and global trade routes face disruption.

For the oil sector, the read-through is a potential increase in long-term supply from a low-cost, high-reserve region, which could pressure crude prices if production ramps. US refiners that once sourced heavy crude from Venezuela may see renewed access, though the timeline is uncertain. The infrastructure rebuild alone would require years and billions in capital. Rubio's $100 billion investment claim implies a scale that, if realised, would rank among the largest single foreign direct investments in the energy industry.

Marco Rubio said the agreement would usher in $100 billion in private investment into Venezuela and lead to lower gas prices in the United States. "This deal is a huge win for both the American and Venezuelan people," he posted on X.