In a striking move that deepens U.S. control over Venezuela’s oil sector, President Donald Trump has declared a national emergency to block any judicial claims against Venezuelan oil revenues being held in U.S. Treasury accounts. The January 9, 2026 Executive Order effectively shields billions in oil funds from creditors by designating them as sovereign Venezuelan property under American custodial control.
“Accordingly, the preservation of the Foreign Government Deposit Funds is of the utmost importance to the United States,” Trump declared in the order, establishing what appears to be a long-term arrangement for American management of Venezuela’s primary economic resource.
Indefinite Control of Venezuela’s Oil Wealth
Just how long does the U.S. plan to maintain this arrangement? According to Energy Secretary Chris Wright, the answer is: indefinitely. Wright stated that controlling Venezuela’s oil sales and revenue is necessary “to stabilize that country’s economy and rebuild its oil sector.” The funds will also eventually be used to compensate American oil giants Exxon Mobil and ConocoPhillips for losses suffered during past nationalizations.
A White House fact sheet accompanying the order explains that these funds are being preserved “to advance U.S. foreign policy objectives” and explicitly notes they are “not available to private creditors.” This effectively places Venezuela’s primary economic resource under direct U.S. control for the foreseeable future.
The administration’s tough stance extends beyond just controlling revenue. The Treasury Department recently announced sanctions on four companies and four oil tankers involved in Venezuela’s oil sector. “President Trump has been clear: We will not allow the illegitimate Maduro regime to profit from exporting oil while it floods the United States with deadly drugs,” the department stated, framing the Venezuelan government as a “narco-terrorist regime.”
From Sanctions to Direct Management
What’s particularly notable about this evolving policy is the shift from traditional sanctions to direct American management of Venezuelan oil sales. The Department of Energy has actively engaged major commodity traders and key banks to execute these sales, according to an analysis by law firm Holland & Knight.
“U.S. Department of Energy Secretary Chris Wright has also indicated that the U.S. would sell the country’s oil ‘indefinitely,'” the firm noted, highlighting that proceeds will be held in U.S. banks until the administration deems Venezuela ready to receive them.
This represents a significant evolution in U.S.-Venezuela relations. After years of sharply reduced oil imports due to sanctions, American receipts of Venezuelan crude were re-established in January 2023, according to energy policy data. That resumption was tied to shifts in U.S. sanctions policy and political conditions in Venezuela.
But now the U.S. appears to be moving beyond mere import restrictions to establish direct control over Venezuela’s oil revenue stream — a far more interventionist approach than traditional sanctions regimes.
The administration’s framing of this as a protective measure “for the good of the American and Venezuelan people” stands in stark contrast to the reality of one sovereign nation controlling another’s primary economic resource. For Venezuela, a country with the world’s largest proven oil reserves, the implications of this indefinite American custodianship could reshape its economic and political future for years to come.
