The Trump administration has reached a $1 billion agreement with French energy giant TotalEnergies to cancel planned offshore wind farm developments along the U.S. East Coast, with the company redirecting its investment toward oil and natural gas projects instead.

Under the deal announced by the Department of Interior, TotalEnergies agreed to relinquish two U.S. offshore wind leases and commit to investing in fossil fuel projects in Texas and other locations. The French company stated it would no longer develop any offshore wind power projects in the United States.

The agreement represents the latest setback for the U.S. offshore wind industry, which has faced multiple disruptions to multi-billion-dollar projects since Donald Trump took office. The Trump administration has consistently opposed wind power development, particularly offshore installations.

The deal comes as global fuel prices have surged amid ongoing conflict in the Middle East, creating additional pressure on energy markets. The administration has indicated plans to increase domestic oil and gas production to address rising fuel costs affecting consumers and businesses.

TotalEnergies' decision to abandon U.S. offshore wind development marks a significant shift for the company, which had previously been committed to renewable energy expansion. The $1 billion investment redirection aligns with the Trump administration's broader energy policy favoring fossil fuel development over renewable alternatives.