US President Donald Trump has announced an agreement with Venezuela that would give the United States a major role in developing more than 65 billion barrels of the country’s proven oil reserves.

Trump described the agreement as a historic transaction that would increase US oil supplies and potentially reduce petrol prices for American consumers. He provided few details about the structure or legal terms of the arrangement.

Venezuela’s interim President Delcy Rodriguez also confirmed the agreement, describing it as an important step toward reviving the country’s struggling economy.

According to Rodriguez, the deal covers 17 strategic oil fields with proven potential of 65 billion barrels. She said the projects could attract more than $100 billion in investment and generate over $209 billion in tax revenue for the Venezuelan state.

“These investments will contribute not only to the recovery and modernization of our industry, but also to our country’s economic growth,” Rodriguez said.

US Secretary of State Marco Rubio called the agreement a major victory for both countries. He said it could bring almost $100 billion in private investment to Venezuela, create thousands of high-paying jobs and support the reconstruction of the country’s economy.

Trump said Rubio and Defence Secretary Pete Hegseth reached the agreement with Venezuelan authorities through a partnership involving private businesses. He did not identify the companies involved or explain the precise commitments made by Washington and Caracas.

A US official told CBS News, the BBC’s media partner, that the US government would retain a 55% stake in a joint venture with an experienced private operator in Venezuela. According to the official, Rodriguez granted the venture a 100-year concession to operate the oil fields.

The arrangement has raised questions because the official agreement has not been publicly released and its constitutional and legal status in Venezuela remains unclear.

Venezuela has the world’s largest proven oil reserves, estimated at about 303 billion barrels, but production has fallen sharply since reaching its peak in the late 1990s. Years of economic instability, underinvestment and deteriorating infrastructure have weakened the country’s oil industry.

Trump has previously urged US energy companies to invest at least $100 billion to restore Venezuelan production. He has also repeatedly said Washington should benefit from Venezuela’s oil resources.

The announcement follows the US capture of former Venezuelan President Nicolás Maduro and his wife, Cilia Flores, in a US special forces operation authorised by Trump on January 3.

After the operation, Trump said his administration would oversee Venezuela until what he described as a safe and orderly political transition. He also said the United States would control the sale of Venezuelan oil for an indefinite period.

The latest agreement could therefore represent a major expansion of US involvement in Venezuela’s energy industry.

Trump has argued that Venezuela previously seized American oil assets and equipment, causing substantial financial losses to US companies. His administration has presented greater US participation in Venezuela’s oil sector as a way to increase energy supplies, attract investment and support reconstruction.

However, the absence of a published agreement leaves important questions unanswered about ownership, governance, taxation and the legal authority behind the proposed arrangement.

Europe is heading towards one of its most difficult winter gas seasons since the energy crisis of 2022, with wholesale prices rising sharply while gas storage levels remain well below their normal seasonal average.

The benchmark Dutch TTF front-month gas price was trading above €66 per megawatt-hour on Tuesday, after briefly exceeding €68. At the start of 2026, the price was around €29 per MWh.

The latest increase has been driven partly by concerns that disruption around the Strait of Hormuz could continue into the winter, limiting energy supplies and intensifying competition for liquefied natural gas.

EU gas storage was 62.99% full at the end of August 24, according to Gas Infrastructure Europe. That compares with a five-year average of about 79%.

Germany’s storage facilities were around 51% full, while the Netherlands had filled only 44.3% of available capacity.

Natasha Fielding, editorial manager for gas, LNG, coal and biomass at Argus Media, said European stocks were unusually low for this point of the year. She noted that the last period with similarly low levels was in 2021, before the previous major gas crisis.

European gas consumption is now around 15% to 20% below 2021 levels, according to Oxford Economics. The consultancy said this means the bloc can operate with less gas in storage, although it would need greater reliance on winter LNG imports.

That could create stronger competition with Asian buyers for available cargoes. The effective closure of the Strait of Hormuz has added to those concerns because the waterway normally handles a significant share of global LNG shipments.

Goldman Sachs analysts have warned that gas prices could rise above €100 per MWh in December if Middle Eastern energy exports recover only gradually through 2027.

A prolonged price increase would eventually reach households, although the impact would not be immediate. Existing contracts, hedging arrangements and fixed-price deals can delay the effect of wholesale market movements.

Oxford Economics estimates that it takes about six months on average for wholesale gas price changes to be fully reflected in consumer prices. The timing varies considerably between countries.

In the Netherlands, household prices can respond relatively quickly because of the structure of the retail market. In Germany and Austria, widespread 12-month or 24-month fixed contracts mean the full impact can take close to a year.

France, Italy and Spain could see consumer prices respond within several months.

Italy is considered particularly exposed to a gas price shock because of its high dependence on gas and relatively quick pass-through to consumers, although its storage levels are currently among Europe’s strongest.

Weather will remain a major factor. A colder-than-normal winter would increase heating demand and put additional pressure on already limited supplies, potentially pushing household energy costs higher across the continent.