WASHINGTON, Feb 1:  US President Donald Trump said on Saturday that India will begin purchasing oil from Venezuela rather than buying crude from Iran, describing it as part of a new energy arrangement between the two countries.

Speaking to reporters aboard Air Force One en route to Florida, Trump said, “India is coming in, and they’re going to be buying Venezuelan oil as opposed to buying it from Iran. So, we’ve already made that deal, the concept of the deal.”

The announcement follows recent U.S. signals that New Delhi may soon be allowed to resume purchases of Venezuelan crude, potentially replacing some of its Russian oil imports, sources told Reuters.

Trump’s comment came as Washington seeks to reduce oil revenue flowing to Russia amid its war in Ukraine, and after the United States eased some sanctions on Venezuela’s oil sector to facilitate exports.

Trump also said China is welcome to make a deal with the United States to buy Venezuelan oil.

India has not been importing significant amounts of Iranian oil due to longstanding U.S. sanctions, turning instead to other sources, including Russian crude after Western penalties drove down costs.

The U.S. President’s remarks reflect a potential shift in global oil trade dynamics and improving U.S.-India relations after a year of tensions over energy imports.