Iran-Venezuela partnership in jeopardy after Maduro’s ouster

The arrest of Venezuelan President Nicolas Maduro last week opened the world to see the chaos in which a country with the world’s largest proven oil reserves continues to starve and abuse its people. But there is more to the former leader’s alleged crimes.

It is worth noting that one of Venezuela’s closest allies over the past few years has been the Islamic Republic of Iran. Overall, this regime is a staunch enemy of the West, and specifically, it hates the United States and the freedoms it defends.

“Despite being the country with the largest reserves, Venezuela’s oil industry can no longer refine its own gasoline for its own needs,” Emanuele Ottolenghi, a senior research fellow at the Center for Terrorist Financing Research, told FOX Business.

After Maduro, Venezuela faces difficult choices to rebuild its devastated economy

But this is where Iran stepped in to “help.” In 2022, the Iranian regime concluded a 20-year multifaceted deal to aid Venezuela. It is worth noting that this included Iran reforming the oil industry in Venezuela. “Iran has brought oil extraction technology and expertise and shipped refined gasoline to help the country,” Ottolenghi says.

This makes a lot of sense for both parties because Venezuela’s oil production fell from 2.6 million barrels per day in January 2016 to 669,000 barrels per day by December 2022. Production increased to 1.14 million barrels recently, according to Trading Economics. This increase in production looks impressive considering that the United States increased sanctions on Venezuela from 2023 through 2025. Ellis says that at least some of the gains went directly to Iran, which had access to refineries in Venezuela.

There is also a military component to Iran’s presence in the South American country, Evan Ellis, a professor of Latin American research at the U.S. Army War College, told FOX Business. “While in Venezuela, Iranian agents participated in assembling military drones,” he says. “In addition, Venezuela has acquired some Iranian-made fast attack boats armed with missiles to threaten people off the coast.”

Ellis says some Venezuelan naval special forces were sent to Iran for underwater combat training. He speculates that such training might be used to attach bombs to the side of oil rigs.

‘We built the oil industry in Venezuela:’ Trump pledges energy return to US after Maduro takeover

A person walks in front of a gas station belonging to the state oil company PDVSA in Caracas, Venezuela, March 16, 2022. (Gaby Ora/Reuters/Reuters Photos)

“Venezuela has also been used as a base for propaganda throughout the region, including on TV channels,” Ottolenghi said. “Iran has a university in Caracas, and they use it to spread their philosophy.

Iran’s close relationship with the Venezuelan regime has provided access to Venezuelan passports to allow Iranians to move more freely throughout the region in a way that Iranian passport holders cannot. “I think Venezuela was one of Iran’s gateways to the region,” Ellis said.

The question now for those following the situation is what will happen next? We’ll have to wait and see what actually happens, says Ottolenghi. “Will the local population be defiant and resistant to the changes demanded by the United States?” he asked.

Young women wave the national flags of Venezuela and Iran during the arrival of former Iranian President Ebrahim Raisi at the Miraflores presidential palace in Caracas, on June 12, 2023. (Yuri Cortez/AFP via Getty Images/Getty Images)

Ellis also sees some groups falling in line with the new order. “The Chavistas who confiscated the property were not good people, but to me, in order to get along well with President Trump, they would likely be happy to cooperate,” Ellis says. Chavistas are Venezuelan historical socialists who emerged under President Hugo Chavez and continued under Maduro. In a similar way, he says, the oil and mining sectors want out of US sanctions, so they are likely to abide by them as well.

Click here to get FOX Business on the go

This means that there will be some changes when it comes to the Iranian presence. He added: “We will see a reduction in some of the activities carried out by Iran.” “I see a serious blow to the Iranian presence in Venezuela.”