The US received 30 million barrels of crude oil from Venezuela and openly discussed using military means to acquire Greenland, intensifying geopolitical tensions and driving up oil prices.
2026-01-07 09:50:22
White House Press Secretary Caroline Levitt stated that President Trump and his team are considering "a range of options" to acquire Greenland, including "using U.S. troops." Levitt's statement further escalates the Trump administration's long-standing and active rhetoric regarding Greenland.
Last Sunday (January 4), Trump stated that the United States needs the Arctic island for national security reasons. Greenland is a territory of Denmark, which, like the United States, is a member of the NATO international military alliance.
On Tuesday morning (January 7), leaders of Denmark and other NATO European countries issued a joint statement refuting Trump's increasingly open desire to acquire Greenland. The statement said, "Greenland belongs to its people. Matters concerning Denmark and Greenland should be decided by Denmark, Greenland, and themselves."
In an emailed statement, Levitt said, "President Trump has made it clear that acquiring Greenland is a U.S. national security priority and is crucial for deterring our adversaries in the Arctic. The President and his team are discussing a range of options to achieve this important foreign policy objective, and of course, the use of the U.S. military is an option the Commander-in-Chief can choose at any time."
The Wall Street Journal reported Tuesday afternoon that Secretary of State Marco Rubio told lawmakers in a closed-door meeting on Monday that the government's goal was to buy Greenland from Denmark.
Trump has frequently discussed annexing Greenland and Canada to the United States, and has also mentioned the Panama Canal. These controversial remarks have drawn international condemnation, although some consider them unserious and unlikely to become part of U.S. foreign policy. Trump's latest discussions about Greenland have raised further serious concerns following the U.S. military's entry into Venezuela and the successful capture of Venezuelan leader Nicolás Maduro and his wife Celia Flores. After that operation, Trump stated, "We will manage this country until we can complete a safe, proper, and wise transition."
Trump also stated that American oil companies would enter Venezuela and “repair” the country’s energy infrastructure, and that their efforts would be “compensated.” Trump told The Atlantic Sunday morning that he would leave it to others to decide what intervention in Venezuela would mean for Greenland.
When asked about Trump's threats against Greenland, Massachusetts Democratic Representative Jim McGovern said, "He's absolutely insane." McGovern added, "I think you have to take him seriously because he's capable of doing some outrageous things."
White House senior advisor Stephen Miller said in an interview Monday that the United States "should make Greenland part of the United States." Miller also refused to rule out the possibility of using force to control the island, but insisted that such an issue was meaningless. He said, "No one would go to war militarily with the United States for the future of Greenland."
But Connecticut Democratic Senator Chris Murphy told reporters on Capitol Hill Tuesday that NATO countries “must” protect Greenland from a U.S. attack if necessary. “Article 5 is what it says,” Murphy said. “Article 5 didn’t anticipate an invasion of Congress by a NATO member. We find it funny, but it’s not really funny because I think he’s getting more and more serious.”
On Tuesday, Arizona Democratic Senator Ruben Gallagher announced he would introduce a resolution in Congress to prevent Trump from invading Greenland. Gallagher posted on X: “Wake up. Trump has made it clear what he wants to do. We must stop him before he has the urge to invade another country.”
Extreme geopolitical risk premiums, potential supply disruptions, and supply uncertainty caused by US global intervention are all contributing to a bullish bias in crude oil prices.
Global economic growth and crude oil demand face direct threats (NATO conflict is the biggest demand-damaging scenario), and events could accelerate the energy transition, bringing fundamental bearish momentum to the oil market. On Wednesday morning in Asian trading, oil prices continued their decline, with US crude briefly falling below $56 per barrel. Earlier in the day, Trump announced that the Venezuelan interim government would transfer 30 to 50 million barrels of high-quality, sanctioned crude oil to the United States. The oil will be sold at market prices, and the proceeds will be controlled by Trump. He has instructed Energy Secretary Chris Wright to implement the plan, which will involve transporting the oil by storage ships directly to US unloading terminals.
This event is a "volatility engine" and a "demand destruction warning" for crude oil. The depth of its negative impact may eventually exceed the strength of its positive impact, but the process may be extremely volatile.
(US crude oil daily chart, source: FX678)
At 9:39 AM Beijing time, US crude oil futures were trading at $56.53 per barrel.
The US has escalated its stance, not ruling out the use of military means.
Last Sunday (January 4), Trump stated that the United States needs the Arctic island for national security reasons. Greenland is a territory of Denmark, which, like the United States, is a member of the NATO international military alliance.
On Tuesday morning (January 7), leaders of Denmark and other NATO European countries issued a joint statement refuting Trump's increasingly open desire to acquire Greenland. The statement said, "Greenland belongs to its people. Matters concerning Denmark and Greenland should be decided by Denmark, Greenland, and themselves."
In an emailed statement, Levitt said, "President Trump has made it clear that acquiring Greenland is a U.S. national security priority and is crucial for deterring our adversaries in the Arctic. The President and his team are discussing a range of options to achieve this important foreign policy objective, and of course, the use of the U.S. military is an option the Commander-in-Chief can choose at any time."
The Wall Street Journal reported Tuesday afternoon that Secretary of State Marco Rubio told lawmakers in a closed-door meeting on Monday that the government's goal was to buy Greenland from Denmark.
Controversial remarks and actions have sparked concerns and increased domestic opposition.
Trump has frequently discussed annexing Greenland and Canada to the United States, and has also mentioned the Panama Canal. These controversial remarks have drawn international condemnation, although some consider them unserious and unlikely to become part of U.S. foreign policy. Trump's latest discussions about Greenland have raised further serious concerns following the U.S. military's entry into Venezuela and the successful capture of Venezuelan leader Nicolás Maduro and his wife Celia Flores. After that operation, Trump stated, "We will manage this country until we can complete a safe, proper, and wise transition."
Trump also stated that American oil companies would enter Venezuela and “repair” the country’s energy infrastructure, and that their efforts would be “compensated.” Trump told The Atlantic Sunday morning that he would leave it to others to decide what intervention in Venezuela would mean for Greenland.
When asked about Trump's threats against Greenland, Massachusetts Democratic Representative Jim McGovern said, "He's absolutely insane." McGovern added, "I think you have to take him seriously because he's capable of doing some outrageous things."
White House senior advisor Stephen Miller said in an interview Monday that the United States "should make Greenland part of the United States." Miller also refused to rule out the possibility of using force to control the island, but insisted that such an issue was meaningless. He said, "No one would go to war militarily with the United States for the future of Greenland."
NATO allies may retaliate according to regulations, and US lawmakers attempt to obstruct this through legal means.
But Connecticut Democratic Senator Chris Murphy told reporters on Capitol Hill Tuesday that NATO countries “must” protect Greenland from a U.S. attack if necessary. “Article 5 is what it says,” Murphy said. “Article 5 didn’t anticipate an invasion of Congress by a NATO member. We find it funny, but it’s not really funny because I think he’s getting more and more serious.”
On Tuesday, Arizona Democratic Senator Ruben Gallagher announced he would introduce a resolution in Congress to prevent Trump from invading Greenland. Gallagher posted on X: “Wake up. Trump has made it clear what he wants to do. We must stop him before he has the urge to invade another country.”
Crude oil is facing a fierce battle between bullish and bearish logic.
Extreme geopolitical risk premiums, potential supply disruptions, and supply uncertainty caused by US global intervention are all contributing to a bullish bias in crude oil prices.
Global economic growth and crude oil demand face direct threats (NATO conflict is the biggest demand-damaging scenario), and events could accelerate the energy transition, bringing fundamental bearish momentum to the oil market. On Wednesday morning in Asian trading, oil prices continued their decline, with US crude briefly falling below $56 per barrel. Earlier in the day, Trump announced that the Venezuelan interim government would transfer 30 to 50 million barrels of high-quality, sanctioned crude oil to the United States. The oil will be sold at market prices, and the proceeds will be controlled by Trump. He has instructed Energy Secretary Chris Wright to implement the plan, which will involve transporting the oil by storage ships directly to US unloading terminals.
This event is a "volatility engine" and a "demand destruction warning" for crude oil. The depth of its negative impact may eventually exceed the strength of its positive impact, but the process may be extremely volatile.
(US crude oil daily chart, source: FX678)
At 9:39 AM Beijing time, US crude oil futures were trading at $56.53 per barrel.
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