Trump Announces What He Calls the Biggest Oil Deal in History With Venezuela

US President Donald Trump announced on Friday, August 29, 2026 (7 Shahrivar 1405), on Truth Social what he called the "biggest oil deal in world history" with Venezuela. He said the agreement secures majority US control of more than 65 billion barrels of Venezuela's proven oil reserves and "more than doubles American oil reserves." According to Al Jazeera, the deal was negotiated by Secretary of State Marco Rubio and Secretary of War Pete Hegseth, working with Venezuela's interim President Delcy Rodriguez.

The agreement is expected to bring about $209 billion to Venezuela's state treasury, and Rubio said it would also bring nearly $100 billion in private investment to the country. Venezuelan officials are preparing to sign new exploration and production agreements next week, mostly with US companies. Venezuela holds the world's largest proven oil reserves but currently produces only 1.25 million barrels per day. The prospect of more Venezuelan crude reaching the global market, alongside the recovering flow of Persian Gulf oil exports through routes bypassing the Strait of Hormuz, is a factor in the global oil supply balance and a potential competitive pressure on exporters such as Iran.