The United States and Venezuela had entered into what President Donald Trump has dubbed the 'biggest oil deal in history'.

The deal with the South American nation will give the United States control over more than 65 billion barrels of proven crude oil reserves.

"The United States of America has just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY! At my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business, have secured majority U.S. control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer," Trump said in a post on Truth Social.

Trump said that the deal will 'more than double' the total oil reserves of the United States.

He also added that this would drive down domestic gasoline prices and will help recover the economy of Venezuela.

"This Historic Transaction MORE THAN DOUBLES American Oil Reserves, greatly increases our Oil Supply, and will substantially lower Gas Prices for all Americans, long into the future, while helping to continue to set Venezuela on a course toward Tremendous Success and Great Prosperity. This Transaction will greatly strengthen the already growing relationship between Venezuela and the United States! Thank you for your attention to this groundbreaking matter," added Trump.

This announcement by the US president comes after months of diplomatic pressure on Caracas by Washington DC, including sanctions enforcement and the US' direct oversight of the oil exports of Venezuela, which were aimed at brining stability to the latter's energy sector.

This new deal will give Washington a sigh of relief after pressures increased on gas prices amid the war in Iran, which has now been going on for six months. In early August, the U.S. Strategic Petroleum Reserve dropped below 300 million barrels, which is a decrease of more than 100 million barrels since January.

Nine months have passed since the US military carried out an operation on Venezuelan soil under Trump's orders in which they captured former president Nicholas Maduro and his wife from their home and took them back to the US to face charges of narcoterrorism and drug trafficking.

Venezuela holds an estimated 303 billion barrels of crude, or about 17% of world supply per the EIA.