US further eases sanctions on Venezuela oil as Iran war drives up prices

WASHINGTON

The Trump administration moved Wednesday to further loosen sanctions on the sale of Venezuelan oil in response to a spike in energy prices caused by the US-Israeli war on Iran.

The Treasury Department's Office of Foreign Assets Control, the agency responsible for US sanctions, issued a three-page general license facilitating the sale from Venezuela's state-run oil company Petroleos de Venezuela S.A (PDVSA) to US companies.

"Today, the Treasury Department’s Office of Foreign Assets Control issued a license broadly authorizing established U.S. entities to engage in many types of transactions with Venezuela’s state-owned oil company, Petróleos de Venezuela, S.A. (PdVSA), and its subsidiaries," the Treasury said on X.

"This license will benefit both the United States and Venezuela, while supporting the global energy market by increasing the supply of available oil. It will also help incentivize new investment in Venezuela’s energy sector," it added.

Separately, the White House announced that it is issuing a two-month waiver for the Jones Act, formally known as Section 27 of the Merchant Marine Act of 1920. The act requires that all goods transported by water between US ports be carried on US-built, US-flagged vessels owned and crewed by American citizens and permanent residents.

A waiver allows foreign vessels to facilitate shipments between US ports.

"President Trump’s decision to issue a 60-day Jones Act waiver is just another step to mitigate the short-term disruptions to the oil market as the U.S. military continues meeting the objectives of Operation Epic Fury," spokesperson Karoline Leavitt said on X.

"This action will allow vital resources like oil, natural gas, fertilizer, and coal to flow freely to U.S. ports for sixty days, and the Administration remains committed to continuing to strengthen our critical supply chains," she added.

The price of oil continued to climb, however, with the Brent crude jumping 6.30% Wednesday. A barrel hovered around $109.94 in morning trading, up roughly $37 since the war began.

WASHINGTON

The Trump administration moved Wednesday to further loosen sanctions on the sale of Venezuelan oil in response to a spike in energy prices caused by the US-Israeli war on Iran.

A waiver allows foreign vessels to facilitate shipments between US ports.

The price of oil continued to climb, however, with the Brent crude jumping 6.30% Wednesday. A barrel hovered around $109.94 in morning trading, up roughly $37 since the war began.