Former President Donald Trump has declared that he will terminate Chevron’s agreement to operate in Venezuela, signaling a major policy shift in U.S. energy and foreign relations. The decision, which aims to cut financial ties with the Venezuelan government, aligns with Trump’s longstanding opposition to economic engagement with the Maduro regime.
Chevron had been operating under a special license allowing limited business activity in the South American nation, despite U.S. sanctions on Venezuela’s state-run oil sector. Trump argues that continuing this agreement benefits the Maduro government and undermines efforts to pressure the regime through economic isolation.
Supporters of the move see it as a step toward strengthening U.S. energy independence and preventing American companies from indirectly funding authoritarian governments. However, critics warn that terminating the agreement could lead to higher energy prices and disrupt global oil markets.
With the announcement, attention now turns to how this policy change will impact both U.S. energy companies and Venezuela’s struggling economy. As discussions over foreign policy and energy security continue, Chevron and other stakeholders are expected to seek clarification on the administration’s next steps.