Venezuelan interim authorities have awarded U.S.-backed North American Blue Energy Partners, or NABEP, 100-year concessions for 17 oil fields, with proven reserves of approximately 65 billion barrels, the White House said on Monday.

NABEP ranks as the second-largest private oil producer in Venezuela. The company has provided the U.S. Department of War’s Office of Strategic Capital with a 35% equity stake in its corporate parent, according to the White House, representing up to “hundreds of billions in value and dividends for the United States.”

President Donald Trump announced on Friday a deal with Caracas that would grant the U.S. majority control over 65 billion barrels, or roughly 20% of the South American country’s vast oil reserves. The U.S. had approximately 46 billion barrels in proven oil reserves as of the end of 2024, according to official figures.

In a fact sheet published Monday evening in Washington, the U.S. government stated it would hold the right to purchase, at production cost, a guaranteed 20% of the off-take from all current and future fields NABEP will operate, as part of an effort to support replenishing the U.S. strategic petroleum reserves.

The U.S. government also retains the “right of first refusal” to purchase the remaining 80% of NABEP’s production, making Washington the prioritized buyer for its energy holdings.

Analysts, however, remained doubtful that this landmark oil agreement could meaningfully increase U.S. energy production or lower gas prices for Americans in the near term. Significant investments are required to extract the valuable resources in Venezuela, whose oil output remains a fraction of its potential due to decades of mismanagement, insufficient investment and sanctions.

NABEP also planned to invest up to $100 billion in new oil infrastructure in Venezuela to expand production, the White House said. Under the agreement, the company is expected to pay $200 billion in royalty and tax payments to Venezuelan governments over the first 25 years.

Oil prices extended gains on Tuesday as traders mulled the threat of escalation, following the resumption of U.S.-Iran military strikes and more turmoil on the Strait of Hormuz.

A tanker was struck by three unknown projectiles while transiting the Strait of Hormuz on Monday, the UK Maritime Trade Operations agency said in a post on Tuesday, Asia time.

The tanker was sailing in the southern shipping lane close to the Omani coast, the UKMTO said, adding that no casualties were reported.

Iran launched an attack on two American bases in Jordan on Monday in retaliation for the U.S. attack on its Larak Island. American forces targeted two Iranian rocket launchers on Larak Island on Sunday, reportedly killing three, saying that Tehran intended to launch rockets carrying sea mines into the Hormuz Strait.

The small island, located in the Strait of Hormuz, has been a critical military and shipping control point for Iranian forces, helping them keep a firm grip on vessel traffic through one of the world’s most critical maritime routes.

Iranian President Masoud Pezeshkian told the Shanghai Cooperation Organisation Summit on Tuesday that Tehran would immediately reciprocate if Washington agreed to return to its commitments under the interim deal signed in June, according to the Iranian Student News Agency.

The back-and-forth hostilities marked the first time that the U.S. and Iran traded strikes in over a month.

While neither side appeared to be seeking a return to full-scale war, both signaled they were prepared to respond to further attacks. “We are going to hit them hard,” President Donald Trump told Fox News on Monday, saying that “there will be a response” to Iran’s attacks on U.S. military bases in the region.

Analysts largely view the U.S. attack on Larak Island as an attempt to break a deadlock rather than a shift in strategy. “By hitting the launchers rather than broader Iranian military infrastructure, the U.S. appears to be punishing a specific behaviour rather than, at least for now, broadening its war aims,” said Ali Vaez, deputy program director at International Crisis Group.

“It is enforcing the blockade,” said Jason Brodsky, policy director of United Against Nuclear Iran, adding that the Trump administration’s goal was to further degrade Tehran’s capabilities to mine the Strait of Hormuz, while focusing on economic coercive measures as the midterm elections approach.

Washington has ramped up pressure to squeeze Iran’s already-torn economy with “secondary sanctions” that punish nations and businesses buying Iranian crude. U.S. Treasury Secretary Scott Bessent said Monday, on the sidelines of the Group of 20 finance ministers’ gathering, that Iran was “lashing out kinetically” because the new sanctions were taking a toll on its economy.

Speaking from the Oval Office on Monday, Trump reportedly said Iran’s financial systems, armed forces, and governing body have largely degraded. “It doesn’t mean we won’t smack them to see what happens,” the president said.

The war, now stretching into its seventh month, has disrupted global energy supplies and sent shockwaves through global financial markets. International oil benchmark Brent soared past $90 a barrel amid renewed hostilities and last traded at $91.35 as of 2:17 a.m. ET on Tuesday. U.S. West Texas Intermediate futures added 1.07% to $86.68 per barrel.

“This is fundamentally an endurance contest,” said Brodsky, as Trump has demonstrated an “unpredictability” that should concern the Iranians, and Tehran may lash out more aggressively militarily as the economic pressure mounts.

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Hello, this is Leonie Kidd coming to you from London.

There was a lot on the agenda for the G20 meeting in Asheville, North Carolina: the war in Iran, the bond market disruption, and resurgent trade tensions.

What did not seem to be clear, was the attendance of Russian Finance Minister Anton Siluanov, in a move that has left European officials in dismay.

Read on for more.

What you need to know today

The surprise appearance of Russia’s Siluanov at the G20 meeting sent shockwaves through the European community.

It marked his first in-person attendance of the summit since Russia’s invasion of Ukraine in 2022 and seemed to blindside the European attendees. Officials opposed appearing in the traditional G20 family photo with Russia, which was ultimately taken without Siluanov present.

U.S. Treasury Secretary Scott Bessent met with Siluanov on the sidelines of the event, and reportedly told the Russian official that no sanctions relief or new agreements with Moscow were possible, as long as the war in Ukraine continues.

Meanwhile, Indian Prime Minister Narendra Modi called on Russian President Vladimir Putin to cease his “endless war” in Ukraine, as the two leaders met at the Shanghai Cooperation Organization summit in Kyrgyzstan on Monday.

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Strait back to strikes

Tensions with Iran also escalated over the weekend.

U.S. President Donald Trump threatened to hit Iran “hard” in an interview with Fox News on Monday, saying that “there will be a response” to Iran’s attacks on U.S. military bases in the region.

Meanwhile, another tanker was struck while transiting through the Strait of Hormuz on Monday.

Venezuela oil

The White House has announced that Venezuela has granted U.S.-backed North America Blue Energy Partners 100-year concessions for 17 oil fields in the country. Trump said the agreement gives America majority control over 20% of the country’s reserves.

Fast fashion fall

Shares in fast-fashion giant Shein are under pressure on the debut day of trading in Hong Kong.

The IPO values Shein at around $26.5 billion, compared with its private market valuation of $100 billion in 2022.

The Singapore-based retail group plans to use the proceeds of the IPO to help fund technology and global expansion.

— Leonie Kidd

And Finally…

Anthony Scaramucci on failure, ego and 11 days in the White House

Anthony Scaramucci’s career has included high-profile successes and setbacks.

In this episode of “Executive Decisions,” the SkyBridge Capital founder reflects on leaving Goldman Sachs to build his own business, why insecurity led him into the wrong job early in his career and the pride and ego that influenced his decision to join the Trump administration.

After being fired from the White House after just 11 days, Scaramucci was advised to disappear from public life. Instead, he chose to face his critics — a decision he says became part of a wider reckoning with his mistakes, his relationships and himself.

— Steve Sedgwick

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