The U.S. struck a deal with Venezuela to get majority control of more than 65 billion barrels of oil reserves as the war with Iran roils the global crude trade, President Donald Trump announced Friday.
Trump said in an evening social media post that the agreement — which he touted as “THE BIGGEST OIL DEAL IN WORLD HISTORY” — comes “at no cost to” U.S. taxpayers.
The agreement more than doubles the U.S. oil reserve, according to Trump. Department of Energy data released earlier this month showed oil volumes in the Strategic Petroleum Reserve hit lows not seen since the 1980s.
Trump’s deal with Venezuela follows the U.S.’ January attack on the South American country. Nicolás Maduro, Venezuela’s then-president, and his wife, Cilia Flores, were captured during the strike.
In his social media post, Trump said U.S. officials coordinated with government leaders in Venezuela. They also utilized a “partnership” with unnamed private businesses to secure the deal, he said.
“This Transaction will greatly strengthen the already growing relationship between Venezuela and the United States,” Trump wrote in the post.
Trump’s announcement comes as consumers grapple with spiking energy prices heading into the midterm elections, which will determine if his Republican party retains full control in Washington.
Trump said the Venezuela deal should bring down prices at the pump. The average price of a gallon of gas in the U.S. reached around $4.09 on Friday, a 27% increase year over year, according to AAA.
West Texas Intermediate crude prices fell 4% this week, marking the first losing week of the last three. Still, prices have jumped more than 24% since the U.S. war with Iran began.
Trump’s war with Iran has hampered transit in the Strait of Hormuz, a globally important passageway for crude. Only a handful of ships have recently crossed through Hormuz each day, down from levels of around 100 seen a year ago, according to the International Monetary Fund’s PortWatch tracker.
