Venezuela’s government on Thursday (January 29, 2026) approved opening the nation’s oil sector to privatisation, reversing a tenet of the self-proclaimed socialist movement that has ruled the country for more than two decades.

The National Assembly approved the overhaul of the energy industry law less than a month after the brazen seizure of then-President Nicolas Maduro in a U.S. military attack in Venezuela’s capital.

Acting President Delcy Rodriguez then signed the reform into law shortly after, before a large group of state oil workers and government supporters.

As the Bill was being passed, the Treasury Department officially began to ease sanctions on Venezuelan oil that once crippled the industry and expanded the ability of U.S. energy companies to operate in the South American nation, the first step in plans outlined by Secretary of State Marco Rubio the day before.

Editorial | Pressure points: On Trump seeking Venezuela’s oil without costs of occupation

The moves by both governments on Thursday (January 29, 2026) are paving the way for yet another radical geopolitical and economic shift in Venezuela.

U.S. President Donald Trump said on Thursday (November 27, 2025) that efforts to halt Venezuelan drug trafficking “by land” would begin “very soon,” further ratcheting up tensions with Caracas, which claims the anti-drug campaign aims at regime change. Mr. Trump made the remarks while video conferencing with deployed U.S. troops to mark the Thanksgiving holiday.

Several of the U.S. military groups that Mr. Trump addressed were actively participating in his anti-drug operation, dubbed “Southern Spear,” which has seen a large military build-up in the Caribbean.

The U.S. military has carried out a series of air strikes against boats it claims were trafficking drugs in international waters, without offering evidence to back up its claims.

Those strikes in the Caribbean and eastern Pacific have killed at least 83 people, according to a tally of publicly released figures.

The remarks come as U.S. continues to pile pressure on Venezuela.

Elaborating on U.S. efforts to halt drug trafficking, Mr. Trump said, “We’ve almost stopped — it’s about 85% stopped by sea.”

“You probably noticed that people aren’t wanting to be delivering by sea, and we’ll be starting to stop them by land,” he said.

“Also the land is easier, but that’s going to start very soon,” he added.

Ratcheting pressure

The remarks come as Trump’s administration continues to pile pressure on Venezuela, despite the U.S. President saying in recent days that he was open to dialogue with Venezuelan leader Nicolas Maduro.

With an aircraft carrier group and numerous other assets in the Caribbean, Washington on Monday designated an alleged Venezuelan drug cartel a foreign terrorist organization, while top U.S. military officials also travelled to the region this week.