The Treasury Department moved on Wednesday to authorize U.S. companies to resume direct business with Petróleos de Venezuela S.A. (PDVSA), marking a significant shift in American foreign policy aimed at stabilizing global energy markets. This decision arrives as the Trump administration searches for ways to increase oil supplies while the United States and Israel remain engaged in a war with Iran.
The newly issued license provides a broad authorization for PDVSA to sell oil both to U.S. firms and on international markets. For years, Washington had essentially frozen dealings with the Venezuelan government and its energy sector. In a tandem move to lower costs at the pump, the White House announced that President Trump will waive Jones Act requirements for 60 days.
According to the Associated Press, this 1920s-era law usually mandates that goods moved between U.S. ports be carried on American-flagged ships, a restriction often cited as a factor in high fuel prices.
These policy shifts come as the Republican administration faces mounting pressure to address soaring oil costs. Since the conflict began, Iran has halted traffic through the Strait of Hormuz, a critical chokepoint through which approximately 20% of the world’s oil flows.
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A Treasury official, speaking to the Associated Press on the condition of anonymity, stated that the license is intended to “incentivize new investment in Venezuela’s energy sector” and “benefit both the U.S. and Venezuela, while increasing the global oil supply.”
While the move provides relief, it does not fully lift existing sanctions. The authorization is limited to companies that were in operation before January 29, 2025. Furthermore, strict financial controls remain in place: payments for oil cannot go directly to PDVSA or other sanctioned Venezuelan entities.
Instead, funds must be deposited into a special U.S.-controlled account. Transactions involving Russia, Iran, North Korea, Cuba, or specific Chinese entities are still prohibited, as are deals involving Venezuelan debt or bonds.
This strategy follows the January arrest and ouster of Nicolás Maduro during a U.S. military operation. Since then, President Trump has indicated that the U.S. would effectively manage the country and its oil exports. However, the decision has drawn domestic and international criticism.
Opponents of the current acting government in Caracas argue that the move rewards a leadership structure still loyal to Maduro’s party despite ongoing reports of corruption and human rights abuses.
Venezuela currently holds the world’s largest proven oil reserves, but its production has cratered over the last two decades. Output fell from 3.5 million barrels per day in 1999 to fewer than 400,000 in 2020 due to mismanagement and prior sanctions. The new rules specifically forbid payments in gold or cryptocurrency, such as the Venezuelan “petro” token.
Regarding the shipping waiver, White House press secretary Karoline Leavitt said the suspension of the Jones Act would help “mitigate the short-term disruptions to the oil market” and ensure that resources like natural gas and coal “flow freely to U.S. ports” for the duration of the 60-day window.
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