{"id":71087,"date":"2026-08-29T04:38:20","date_gmt":"2026-08-29T08:38:20","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-secures-biggest-oil-deal-in-world-history-as-fed-warns-of-stubborn-inflation\/71087\/"},"modified":"2026-08-29T04:38:20","modified_gmt":"2026-08-29T08:38:20","slug":"trump-secures-biggest-oil-deal-in-world-history-as-fed-warns-of-stubborn-inflation","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-secures-biggest-oil-deal-in-world-history-as-fed-warns-of-stubborn-inflation\/71087\/","title":{"rendered":"Trump Secures &#8220;Biggest Oil Deal in World History&#8221; as Fed Warns of Stubborn Inflation"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>President Donald Trump announced a historic deal with Venezuela<\/strong> giving the U.S. majority control over <strong>65 billion barrels<\/strong> of proven oil reserves, potentially doubling American reserves.<\/li>\n<li><strong>Federal Reserve Chairman Kevin Warsh signaled potential interest rate hikes<\/strong>, contradicting the President\u2019s claims of falling prices and citing a <strong>3.7% inflation rate<\/strong> that remains well above the 2% target.<\/li>\n<li><strong>OpenAI (<a href=\"\/stock\/OAI\">OAI<\/a>) terminated its contract with SpaceX-owned Cursor<\/strong>, effective November 12, 2026, citing concerns over Elon Musk\u2019s history of contract violations.<\/li>\n<li><strong>Iran\u2019s economy is facing a &quot;35% shrinkage&quot; in foreign trade<\/strong> as the U.S. intensifies its &quot;Economic D-Day&quot; blockade, while the IRGC Navy claims &quot;absolute control&quot; over the Strait of Hormuz.<\/li>\n<li><strong>A catastrophic flood in the Nepal-Tibet border region<\/strong> has left over <strong>630 dead and nearly 3,000 missing<\/strong>, including at least 90 American citizens.<\/li>\n<\/ul>\n<h2>Energy Markets: The Venezuela Megadeal and Hormuz Tension<\/h2>\n<p>President <strong>Donald Trump<\/strong> announced what he termed the <strong>\u201cbiggest oil deal in world history\u201d<\/strong> on Friday, claiming the U.S. has secured a controlling stake in nearly a quarter of <strong>Venezuela\u2019s<\/strong> untapped oil reserves. The deal, reportedly struck with interim President <strong>Delcy Rodriguez<\/strong>, involves a <strong>100-year concession<\/strong> for a joint venture in which the U.S. government holds a <strong>55% stake<\/strong>. Secretary of State <strong>Marco Rubio<\/strong> noted the agreement is expected to attract <strong>$100 billion in private investment<\/strong> and significantly lower domestic gasoline prices.<\/p>\n<p>Simultaneously, tensions in the Middle East have reached a fever pitch as the <strong>Islamic Revolutionary Guard Corps (IRGC) Navy<\/strong> declared &quot;complete and decisive control&quot; over the <strong>Strait of Hormuz<\/strong>. Despite White House assertions that the waterway remains open under U.S. protection, shipping data shows transit has dropped to just <strong>seven vessels per day<\/strong>, down from a 10-day average of 15. The Iranian government admitted that U.S. sanctions have caused foreign trade to contract by <strong>35%<\/strong>, with annual inflation in the country hitting <strong>66%<\/strong>.<\/p>\n<h2>Monetary Policy: Fed Chair Warsh Challenges White House Narrative<\/h2>\n<p>In his first major address at the <strong>Jackson Hole Economic Policy Symposium<\/strong>, Federal Reserve Chairman <strong>Kevin Warsh<\/strong> offered a hawkish outlook that directly clashed with President Trump\u2019s recent optimism. While the President has insisted that prices are falling, Warsh described the <strong>3.7% inflation rate<\/strong> as &quot;concerning&quot; and stated the central bank has &quot;work to do&quot; to reach its <strong>2% target<\/strong>. Following the speech, markets priced in a <strong>57% probability<\/strong> of a quarter-point interest rate hike in September.<\/p>\n<p>Warsh also signaled a departure from traditional &quot;forward guidance,&quot; arguing that the practice has &quot;overstayed its welcome&quot; and limits the Fed&#39;s flexibility. This stance sets the stage for a potential confrontation with the administration, as Trump has repeatedly called for aggressive rate cuts to stimulate the economy. <em>Analysts suggest that the Fed&#39;s independence will be tested as it balances persistent price pressures against political demands for lower borrowing costs.<\/em><\/p>\n<h2>Technology &amp; Logistics: OpenAI\/SpaceX Feud and Drone Strikes<\/h2>\n<p>The rivalry between <strong>Elon Musk<\/strong> and <strong>Sam Altman<\/strong> escalated further as <strong>OpenAI (<a href=\"\/stock\/OAI\">OAI<\/a>)<\/strong> announced it will cut off AI model access for <strong>Cursor<\/strong>, a coding tool recently acquired by <strong>SpaceX (<a href=\"\/stock\/SPCX\">SPCX<\/a>)<\/strong>. OpenAI cited a lack of confidence that Musk\u2019s companies would adhere to terms of service, referencing past disputes involving <strong>xAI<\/strong> and <strong>X<\/strong> (formerly Twitter). Cursor management noted that OpenAI models currently account for only <strong>5% of their total traffic<\/strong>, suggesting the impact may be limited.<\/p>\n<p>In Eastern Europe, <strong>Ukrainian drones<\/strong> conducted a massive overnight strike on Russia\u2019s <strong>Rostov region<\/strong>, targeting critical logistics infrastructure. The attack sparked significant blazes at a major <strong>Ozon (<a href=\"\/stock\/OZON\">OZON<\/a>)<\/strong> logistics hub and warehouses belonging to the electronics retailer <strong>DNS<\/strong>. Russian officials reported that <strong>313 drones<\/strong> were intercepted across 12 regions, but the damage to the fourth-largest online sales network in Russia highlights the increasing vulnerability of domestic supply chains.<\/p>\n<h2>Global Briefs: Himalayan Disaster and Chinese Military Expansion<\/h2>\n<p>A humanitarian crisis is unfolding in <strong>Nepal and Tibet<\/strong> following a &quot;tsunami-like&quot; wall of water that swept through the Himalayas. The death toll has reached <strong>633<\/strong>, with nearly <strong>3,000 people missing<\/strong>, including hundreds of hydropower workers and foreign pilgrims. The <strong>Red Cross<\/strong> estimates that <strong>93,000 people<\/strong> have been affected by the disaster, which has caused an estimated <strong>$5 billion<\/strong> in damages to regional infrastructure.<\/p>\n<p>In China, new satellite imagery from <strong>Planet Labs<\/strong> reveals a massive expansion at the <strong>Lop Nur<\/strong> flight-test base, often referred to as China&#39;s &quot;Area 51.&quot; The facility now features a <strong>16,400-foot runway<\/strong> and massive new hangars, fueling speculation that it will host next-generation aircraft such as the <strong>H-20 stealth bomber<\/strong>. These developments underscore China&#39;s accelerating efforts to modernize its aerial combat capabilities amid rising global geopolitical competition.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways President Donald Trump announced a historic deal with Venezuela giving the U.S. majority control over 65 billion barrels 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