President Trump announced an agreement with Venezuela that will reportedly give the United States control of 65 billion barrels of the country’s oil reserves. Trump deemed it the largest oil deal in history and said the additional supply would more than double American reserves and help reduce gasoline prices.

The agreement was arranged through private businesses and negotiated by Secretary of State Marco Rubio, Secretary of War Pete Hegseth and interim Venezuelan President Delcy Rodriguez. Trump said the transaction would impose no cost on American taxpayers, with Rubio saying it would allegedly provide Venezuela with nearly $100 million in private investment and create thousands of well-paying jobs.

The announcement comes while American drivers face average gasoline prices of roughly $4.09 per gallon. West Texas Intermediate crude recently traded at $83.44 per barrel after falling 2.2% over five days as Washington increased economic sanctions against Iran while limiting further direct military action.

The agreement is poised to have major ripple effects on energy in the Western Hemisphere, as 65 million barrels provide the United States with a substantially larger supply cushion during a period when war and sanctions are driving oil and gas prices upward, with no signs of slowing down. With greater access to Venezuelan crude, America’s exposure to disruptions in the Middle East and beyond will be reduced, and Washington’s leverage over producers strengthened.

Turning Venezuela’s oil into affordable fuel will be an uphill battle. Years of corruption, underinvestment and neglected equipment have left the country’s production network badly damaged. American companies may bring the money and expertise needed to revive it, but they will need firm legal protections and a government capable of honoring the deal.

While Venezuelan crude already reaches American refineries, the deal’s promised increase will not come this year, as restoring damaged oil fields and infrastructure is expected to take several years before larger volumes can reach U.S. markets.

Oil traders build future supply expectations into current prices, so any signs of real progress in Venezuela could help prevent sudden price spikes before any crude ever reaches American refineries. Still, consumers should not expect immediate savings at the gas pump. Gas prices are shaped by several factors, including refinery capacity and seasonal demand. Venezuelan crude is also much heavier than most American oil, and requires specialized processing.

While a lot of eyes are on the current conflict with Iran and the Strait of Hormuz closures, and understandably so, the biggest benefit from this deal with Venezuela may lie in its protection from future energy crises as opposed to immediately cheaper gas prices. A dependable supply from Venezuela would give the United States another option when war or sanctions disrupt oil from the Middle East. The added flexibility may also limit price surges and make supply cuts set by foreign producers less of a gut punch for Washington.