President Donald Trump revealed a landmark agreement between the U.S. and Venezuela, granting America majority control over more than 65 billion barrels of Venezuelan oil reserves. This deal, which Trump described as the largest oil arrangement in history, aims to bolster U.S. energy security amid global supply disruptions linked to ongoing conflict with Iran. According to Trump, the arrangement came at no expense to U.S. taxpayers and will more than double America’s strategic petroleum reserves, which recently hit the lowest levels seen since the 1980s.

This agreement follows a significant U.S. military operation earlier in the year in Venezuela, during which Venezuelan President Nicolás Maduro and his wife were captured. Trump noted that U.S. officials collaborated closely with Venezuelan government leaders and partnered with private sector entities to secure the oil deal. He emphasized that this transaction is expected to strengthen the growing relationship between the two nations, signaling a shift in diplomatic and economic ties after months of tension.

The announcement comes at a critical time as U.S. consumers face rising fuel prices, with the average cost of a gallon of gasoline reaching approximately $4.09—a 27% increase year-over-year. The deal aims to help reduce gas prices ahead of crucial midterm elections, where control of Washington could hinge on voters’ reactions to economic pressures. Despite a recent dip, crude oil prices have surged more than 24% since the conflict with Iran began, driven in part by restricted shipments through the strategically vital Strait of Hormuz.

The ongoing war with Iran has severely impacted crude oil flows through the Strait of Hormuz, with daily ship transits dwindling sharply compared to a year ago, according to the IMF’s PortWatch tracker. As the U.S. seeks to mitigate disruptions caused by this conflict, the Venezuela oil deal is positioned as a strategic move to secure energy resources and stabilize market prices. This development highlights the complex interplay of geopolitical conflict and energy security in global markets.