President Donald Trump has unveiled a significant oil agreement with Venezuela, a move that comes as global crude supply faces mounting strain amid the ongoing US-Iran conflict. According to Xinhua, Trump stated on social media on the evening of the 28th that the US has reached a petroleum-related deal with Venezuela, under which American interests will gain "majority control" over more than 65 billion barrels of the nation's proven oil reserves.
Trump hailed the pact as the "largest oil deal in world history" and underscored that it comes at "zero cost" to American taxpayers. The agreement, he said, was negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Venezuelan interim leader Delcy Rodriguez, with additional support leveraged through "partnerships" with several unnamed private firms.
While WTI crude futures posted a weekly decline of 4% this week, marking the first losing week in three, oil prices have still climbed more than 24% since the outbreak of the US-Iran war. The conflict has severely disrupted energy supply chains, placing sustained upward pressure on global benchmarks.
War Disrupts Supply, Strategic Reserve Dwindles
The agreement arrives as US energy supplies face multiple simultaneous pressures. The US-Iran war has significantly hampered crude shipments through the Strait of Hormuz, a waterway that previously carried roughly 20% of global petroleum trade. Daily vessel transits there have plunged from approximately 100 ships a year ago to just a handful now.
Meanwhile, America's Strategic Petroleum Reserve continues to deplete rapidly. Data from the Department of Energy earlier this month showed the reserve has fallen below 300 million barrels, dropping more than 100 million barrels since early 2026 and reaching its lowest level since the 1980s. Trump indicated that securing control over the 650 billion barrels of oil reserves would more than double the size of the US stockpile.
At the retail level, the average price of regular gasoline in the US rose to roughly $4.09 per gallon on the 28th, according to the American Automobile Association, marking a 27% increase year-over-year. With midterm elections approaching, Trump faces mounting political pressure to lower energy costs, as the outcome will determine whether Republicans can maintain full control in Washington. Trump expressed confidence that the Venezuela agreement should help bring oil prices down.
This article was adapted from content originally published by Wall Street See.
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