US Eases Venezuela Oil Sanctions Amid Global Supply Crunch

Washington, D.C. – The United States Treasury has eased restrictions on Venezuela’s state-owned oil company, Petróleos de Venezuela (PdVSA), granting a broad licence for U.S. firms to buy Venezuelan crude directly and sell it globally. The move, under President Donald Trump, aims to increase oil supply as conflicts in the Middle East block the Strait of Hormuz and tighten global energy markets.

According to the Treasury’s Office of Foreign Assets Control, the licence is designed to “reopen and restore Venezuela’s energy sector” in partnership with the Venezuelan government. The agreement is expected to benefit both countries, stabilize global oil availability, and encourage investment in Venezuela’s reserves, estimated at 300 billion barrels.

This policy shift reverses 2025’s sanctions, which included 25% tariffs on Venezuelan crude imports, following accusations from Trump that Caracas had sent gang members, including Tren de Aragua, to the U.S. The sanctions came after Nicolás Maduro’s capture and U.S. plans to temporarily oversee the country amid cocaine-trafficking allegations against top officials.

Revenue from Venezuelan oil sales will flow into U.S.-controlled accounts to fund welfare programs under Vice President Delcy Rodríguez’s administration. Trump has also urged major U.S. oil companies, including Chevron, ConocoPhillips, and ExxonMobil, to invest in rebuilding PdVSA’s aging infrastructure. The initiative positions Venezuela as a key oil supplier while providing Washington influence over its political and energy stability.

Global supply shortages, worsened by the Iran conflict, have pushed oil prices higher, with importers across Africa, such as Nigeria, hoping for relief from the reintroduction of South American barrels to the market.