National Emergency Declared to Safeguard Oil Funds
U.S. President Donald Trump on Friday signed an executive order declaring a national emergency to safeguard revenue from Venezuelan oil that is held in U.S. Treasury accounts. The White House said the measure is designed to protect these funds from being seized by courts, creditors, or legal processes that could undermine U.S. policy aims.
The executive order blocks any attachment, judgment, lien, execution, garnishment, or similar judicial action against the Venezuelan oil revenues and related sales funds — collectively referred to as Foreign Government Deposit Funds. These funds are now given special legal protection and cannot be accessed or claimed without specific U.S. government authorisation.
Officials described the step as necessary for U.S. national security and foreign policy objectives in Venezuela. Trump’s administration says that allowing these assets to be seized could undermine efforts to stabilise the country politically and economically, and could has broader implications for hemispheric security.
Trump Administration’s Wider Oil Strategy
The White House fact sheet states that protecting these oil revenues is part of a larger strategy to ensure that Venezuelan asset revenues help advance U.S. foreign policy goals — including promoting peace, prosperity and stability in the region. The order also emphasises that the funds are sovereign assets belonging to Venezuela but are held in U.S. custody for governmental and diplomatic purposes, not subject to private claims.
Trump signed the order shortly after meeting with executives from major U.S. oil companies, including Chevron, ExxonMobil and ConocoPhillips. The president urged these firms to consider investing heavily — potentially up to $100 billion — in Venezuela’s oil sector as part of broader economic engagement. However, the chief executive of ExxonMobil described Venezuela as “uninvestable” without sweeping legal and economic reforms.
The move also follows significant actions by U.S. forces in Venezuela. Earlier this week, U.S. military units carried out a high-profile operation in Caracas that resulted in the capture of Venezuelan leader Nicolás Maduro, heightening political and geopolitical tensions.
Preventing Court Seizure and Boosting U.S. Influence
By declaring a national emergency under the International Emergency Economic Powers Act (IEEPA) and the National Emergencies Act, the order grants sweeping authority to the president to manage these foreign oil funds. The White House said this will ensure that critical financial resources currently held in U.S. accounts are protected from legal challenges that might arise domestically or internationally.
The order also explicitly supersedes previous executive orders that might have regulated these funds, consolidating financial control and legal protection. It affirms that the funds will be held solely for sovereign, governmental or diplomatic use as determined by U.S. authorities.
Supporters of the measure argue it prevents courts or private creditors from disrupting U.S.-led efforts to stabilise Venezuela’s economy, potentially aid its population, and limit the influence of hostile actors. Critics, however, warn that such sweeping control could raise legal questions about sovereignty and international law.
