Trump Announces Deal for Venezuela's 65 Billion Oil Barrels
President Trump said Friday the U.S. has finalized an agreement with Venezuela's government granting it majority control of 65 billion barrels of the country's oil reserves.
The Morning Brief Desk · August 29, 2026 · Based on reporting by AP News
President Donald Trump said Friday that the United States and Venezuela's government have completed a formal agreement covering the South American country's oil. Under the arrangement, the U.S. gains majority control over 65 billion barrels of Venezuelan reserves, according to AP News.
Trump characterized the deal as "historic." On the Venezuelan side, interim president Delcy Rodríguez offered a positive assessment, saying the pact would help pull her country's economy out of its slump, per BBC reporting. The agreement has not been received warmly everywhere: critics have labeled it predatory, though the material available does not identify those critics by name or detail their specific objections.
The scale of the arrangement is unusual. U.S. officials say Venezuela sits on more proven oil than any other nation, and one official quoted by Axios ahead of the announcement described the prospective deal as "massive." The Friday announcement came two days after Axios first reported that negotiations were underway, confirming the broad outlines of that story. Key terms beyond the headline figure -- including how the ownership structure will work, what Venezuela receives in exchange, and the timeline for implementation -- were not spelled out in the initial reports.
The context
The public record on this deal is short. Axios reported Thursday that the Trump administration had been negotiating to acquire an ownership stake in Venezuela's oil fields, citing U.S. officials who framed the potential agreement in sweeping terms. That scoop preceded the formal announcement by two days.
Venezuela's importance in this arrangement rests on geology: the country holds the largest proven oil reserves in the world, according to U.S. officials. The 65 billion barrels covered by the agreement represent the portion over which the United States now holds majority control.
Rodríguez's framing of the deal as an economic revival tool points to the condition of Venezuela's economy, which she suggested needs the boost the agreement could provide. How the two governments arrived at the negotiating table, and how long talks lasted before Thursday's report surfaced, has not been disclosed in the available reporting.
Why it matters
A U.S. government stake of this size in a foreign country's oil reserves is a departure from the way energy deals are typically structured, and the reserves involved are the world's largest proven holdings, per U.S. officials. The arrangement could affect global energy markets, U.S. fuel supplies, and the balance of influence in the Western Hemisphere. For Venezuela, Rodríguez has staked her government's economic recovery case on the agreement, while critics' charge that the terms are predatory signals a fight over whether the country is giving up too much.
What’s next
The most important unknowns are the deal's mechanics: the price or terms Venezuela accepted, how majority control will be exercised, and when oil under the agreement begins flowing or changing hands. Watch for the release of the agreement's text, reactions from other governments in the region, and whether opposition inside Venezuela or the United States translates into legal or political challenges. None of those steps has been announced so far.
Sources
AP News — Trump says US has reached deal with Venezuela on oil reserves
President Trump announced the U.S. has entered an agreement with Venezuela to take control of 65 billion barrels of the country's oil reserves.
BBC World — Trump hails 'historic' deal for US to control 65bn barrels of Venezuela's oil
Venezuela's interim president says the unusual agreement will help revive her country's economy; critics call it predatory.
Axios — Scoop: U.S. close to striking 'massive' deal for Venezuelan oil fields
The Trump administration negotiated an ownership stake in Venezuela's enormous oil resources, per U.S. officials -- the world's largest proven reserves.
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