Trump Announces India-Venezuela Oil Pivot to Squeeze Russia and Iran

The Chronify

February 1, 2026

In a major reshuffling of global energy markets, President Donald Trump has announced that India has agreed to shift its oil procurement from Iran and Russia to Venezuela.

Speaking to reporters aboard Air Force One on Saturday, February 1, 2026, President Trump revealed that India is "coming in" to purchase Venezuelan crude. This strategic pivot is designed to achieve two major U.S. foreign policy goals: starving Russia of oil revenue during its ongoing war in Ukraine and further isolating Iran's nuclear program.

Key details of the administration's broader energy and trade strategy include:

The India Deal: India is expected to slash its Russian crude imports-which peaked at 1.2 million barrels per day in January-to below 1 million bpd in February, with further cuts planned. In exchange, the U.S. is offering access to Venezuela’s massive reserves to help India avoid the 50% tariffs Washington recently imposed on Indian goods.
Fiscal Receivership of Venezuela: Secretary of State Marco Rubio outlined a plan where the U.S. Treasury will oversee all Venezuelan oil revenue. Funds will be deposited into a U.S.-controlled account (reportedly based in Qatar) and released only for approved "basic services" like healthcare and policing.
Ultimatum to Canada: Trump renewed his threat of 100% tariffs on all Canadian goods if Prime Minister Mark Carney proceeds with a trade agreement with China. Trump warned that "China will eat Canada alive" and signaled that Washington will not allow Canada to become a "drop-off port" for Chinese products entering the U.S.
Pressure on Iran: While threatening a "massive armada" currently moving toward the Persian Gulf, Trump noted that Tehran is "seriously talking" to the U.S. to avoid military action, though he remains skeptical of a satisfactory deal.

The shift represents a "low-cost extraction" model for the Trump administration-managing Venezuela’s resources from a distance without a permanent troop presence, while simultaneously dictating the energy portfolios of major allies like India.