Trump Ends Chevron’s Venezuela Deal Over Maduro’s Failure To Meet US Demands

President Donald Trump has terminated a key oil license that allowed Chevron to operate in Venezuela, citing dictator Nicolás Maduro’s failure to fulfill promises on deporting illegal migrants. The move reverses a major concession made under President Joe Biden.

Trump made the announcement on Truth Social, stating that his administration was revoking the “oil transaction agreement” from November 26, 2022 as detailed here.

Although he did not name Chevron, the company was the sole beneficiary of the Biden-era license, which had allowed it to extract and sell Venezuelan oil despite ongoing U.S. sanctions.

The Biden administration had issued the deal in hopes that Venezuela would take back tens of thousands of its citizens who had entered the U.S. illegally, including members of the Tren de Aragua gang. While the Maduro government had initially pledged to cooperate, Trump now says the process has been too slow.

Financial markets reacted quickly to the decision. Reports indicate that Venezuela’s oil bonds plummeted after the announcement, dealing another blow to the country’s struggling economy. With Chevron forced to exit Venezuela by July, the impact on the nation’s oil industry could be severe.

Chevron had approached the Biden-era agreement cautiously, avoiding major new investments and focusing instead on maintaining existing operations and recovering debt. However, Trump’s decision ensures that even those limited activities will come to an end.

By shutting down the oil deal, Trump is making it clear that his administration will not reward foreign governments that fail to deliver on their commitments. The move is the latest in his broader efforts to curb illegal immigration and hold foreign regimes accountable.

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