The United States has eased sanctions on Venezuela’s state-owned oil sector, allowing US companies to resume limited trading with Petroleos de Venezuela SA (PDVSA), the AP reports, as the Donald Trump administration seeks to expand global oil supplies amid the ongoing Iran conflict.The U.S. Treasury Department on Wednesday issued a sweeping license allowing PDVSA to sell Venezuelan crude directly to U.S. companies and global markets, a major policy shift after years of restrictions on transactions with Venezuela’s government and energy industry.Separately, the White House said Trump would waive for 60 days requirements under the Jones Act under which goods shipped between US ports must be carried on US-flagged ships. Legislation introduced in the 1920s to support domestic shipbuilding has often been criticized for contributing to high fuel costs.Both moves underscore growing pressure on the administration to stem rising oil prices as the United States, along with Israel, continues a military campaign against Iran with no clear end in sight. Global energy markets have tightened after Tehran blocked traffic through the Strait of Hormuz, a key passage through which about a fifth of the world’s oil supply typically passes.According to a Treasury official quoted by the Associated Press, the license is intended to encourage new investment in Venezuela’s energy sector while increasing the availability of crude oil around the world. The officer said this on the condition of anonymity.Since the ouster and arrest of Nicolas Maduro during a US military operation in January, Trump has said that Washington would effectively “run” Venezuela and sell its oil production.Targeted relief does not lift restrictions completely. The license allows companies that were in operation before Jan. 29, 2025, to buy Venezuelan crude and conduct transactions otherwise barred under U.S. sanctions, effectively reopening trade channels to a major oil producer.However, payments cannot be made directly to approved Venezuelan entities such as PDVSA. Instead, the proceeds must be sent to a US-controlled account, meaning oil trading can resume but financial flows will remain under US surveillance.The license also bans transactions involving Russia, Iran, North Korea, Cuba and certain Chinese entities, as well as transactions involving Venezuelan sovereign debt or bonds. Payment in gold or cryptocurrencies, including the Petro token issued by Caracas in 2018, is not allowed.Analysts expect the measure to provide a significant boost to Venezuela’s oil-dependent economy and reassure companies wary of investing. The decision is part of what officials described as a phased plan by the Trump administration to stabilize Venezuela.Critics argue that the policy risks benefiting political leaders aligned with Maduro despite ongoing concerns over repression, corruption, and human rights abuses. Economic conditions in the country remain tense, with many public sector workers earning about $160 a month last year and private sector salaries averaging about $237 last year, according to Venezuela’s central bank. Inflation soared to 475%, putting food prices out of reach for many households.Venezuela has the world’s largest proven oil reserves and once depended on them to maintain one of Latin America’s strongest economies. However, corruption, policy missteps, and US sanctions caused production to decline from about 3.5 million barrels per day in 1999 to less than 400,000 barrels per day in 2020.Earlier sanctions under Trump’s first administration had forced Caracas to sell crude at steep discounts — about 40% below the market rate — to buyers including China and other Asian markets, which often accepted alternative forms of payment such as rubles, barter or digital assets.Meanwhile, White House press secretary Carolyn Leavitt said the temporary Jones Act waiver would help “minimize short-term disruptions to the oil market” during the Iran conflict and “allow critical resources like oil, natural gas, fertilizer and coal to flow freely to U.S. ports.”
