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0 Share Newsweek is a Trust Project member See more of our trusted coverage when you search. Prefer Newsweek on Google to see more of our trusted coverage when you search. President Donald Trump announced what he called the "biggest oil deal in world history," saying the United States has secured majority control of more than 65 billion barrels of proven oil reserves in Venezuela through an agreement involving the Venezuelan government and private-sector partners.
In a Truth Social post Friday, Trump said the arrangement would come at "no cost to the American taxpayer," more than double U.S. oil reserves and help lower gasoline prices.
Trump said Secretary of State Marco Rubio and Defense Secretary Pete Hegseth helped negotiate the deal alongside Venezuelan interim President Delcy Rodríguez, describing it as a historic step in strengthening ties between the two countries.
Rubio posted on X, "This deal is a huge win for both the American and Venezuelan people. It demonstrates how President Trump's bold foreign policy is driving America First wins: securing stable reserves and low-cost oil in our Hemisphere and lowering gas prices here at home. For the Venezuelan people, this deal will bring nearly $100 billion in private investment, support thousands of high-paying jobs, and drive the reconstruction of Venezuela's economy."
A U.S. official told Newsweek on Friday night that the deal would give the U.S. an effective 55 percent output of a new Venezuelan oil venture through equity and oil purchased at cost. Rodríguez has granted a private company—a joint effort between the U.S. government and a private operator in Venezuela—100-year concessions to fields holding 63 billion barrels of proven reserves, potentially making it the world's second-largest corporate holder after Saudi Aramco, the official said.
Trump posted in full, "BREAKING NEWS: The United States of America has just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY! At my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business, have secured majority U.S. control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer. This Historic Transaction MORE THAN DOUBLES American Oil Reserves, greatly increases our Oil Supply, and will substantially lower Gas Prices for all Americans, long into the future, while helping to continue to set Venezuela on a course toward Tremendous Success and Great Prosperity. This Transaction will greatly strengthen the already growing relationship between Venezuela and the United States! Thank you for your attention to this groundbreaking matter. MAKE AMERICA GREAT AGAIN! President DONALD J. TRUMP."
The national average price for a gallon of gas is $4.09 as of Friday, according to AAA.
For the first time, the national average has remained above $4 per gallon every day in August. The month is now on track to become the most expensive August on record at the pump, AAA reported, surpassing the previous record set in 2022.
The organization said the national average is 1 cent lower than last week, but that there’s been “little movement” on the crude oil front.
“Due to continued volatility in the Strait of Hormuz, crude oil prices remain in the $80 per barrel range,” AAA said in a Thursday update.
Trump’s announcement comes against the backdrop of a major transformation in relations between Washington and Caracas.
Nearly nine months ago, U.S. forces, at Trump’s direction, captured Venezuelan President Nicolás Maduro and brought him to the United States to face federal narcoterrorism and drug trafficking charges.
The Trump administration has since expanded U.S. involvement in Venezuela’s energy sector, which contains the world’s largest proven crude oil reserves.
Venezuela holds some of the world’s largest oil reserves, with an estimated 303 billion barrels of crude—about 17 percent of the global total, according to the U.S. Energy Information Administration. Much of the country’s oil is already mapped and known, unlike in other regions where geologists are still searching for untapped reserves.
Newsweek reached out to the Venezuelan government for comment.
Contact Newsweek editors on this story: Edward T. Cummins and Gray R. Thomas.
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