Treasury Eases Venezuela Oil and Fertilizer Sanctions to Counter Iran War Price Shock
The Axios scoop reports that on Friday the U.S. Treasury Department, through its Office of Foreign Assets Control, quietly expanded authorizations for U.S. businesses and farmers to buy Venezuelan oil and petrochemical products, including fertilizer, in an effort to offset Iran war–driven spikes in energy and input costs. The new licenses allow U.S. entities to import Venezuelan oil and fertilizer, provide goods, services and technology to support Venezuela’s electricity and petrochemical sectors, and negotiate new contracts to develop Venezuelan oil and gas fields or modernize its electric grid to boost output. Treasury Secretary Scott Bessent is pitching the move as a way to increase supply and limit inflation and food-cost pressures as tanker bottlenecks in the Persian Gulf tighten global oil and fertilizer markets. The step is part of a broader post–Jan. 3 strategy to reintegrate the U.S. and Venezuelan economies after Washington ousted Nicolás Maduro, which has already included a large U.S.–Venezuela gold deal, and it underscores how the Iran war is forcing the administration to recalibrate sanctions to stabilize domestic prices. Critics online are already questioning whether easing pressure on Caracas to cushion war costs undercuts years of U.S. human-rights and anti-corruption rhetoric on Venezuela, while farm groups are likely to welcome any relief on fertilizer supplies heading into planting season.
📌 Key Facts
- Treasury, via OFAC, on Friday authorized U.S. businesses and farmers to purchase and import Venezuelan petrochemical products such as fertilizer and oil.
- The actions also permit U.S. provision of goods, services, or technology to support Venezuela’s electricity and petrochemical sectors and to negotiate new oil, gas, and grid-modernization contracts.
- Treasury Secretary Scott Bessent framed the move as necessary to expand Venezuela-related energy investment and allow fertilizer exports to the U.S. to help "our great American farmers" cope with Iran war–driven price spikes.
- The policy shift comes after the U.S. ousted Venezuelan strongman Nicolás Maduro on Jan. 3 and recently struck a major gold deal with Venezuela, as the administration turns to Caracas to help offset a global oil and fertilizer crunch.
📊 Relevant Data
Black households in the US face a median energy burden of 5.1% of their income, which is 64% higher than the national median of 3.1%, while Hispanic households face a burden 20% higher than White households.
Report: Low-Income Households, Communities of Color Face High 'Energy Burden' — ACEEE
In 2023, food insecurity rates were 24.4% for Black non-Hispanic households and 20.2% for Latinx households, more than double the rate for White non-Hispanic households at around 10%.
USDA Food Security Report Reveals 47.9 Million Americans Facing Hunger — FRAC
US sanctions on Venezuela, intensified since 2017, contributed to a steep economic decline, with oil revenue losses equivalent to 213% of GDP between 2019 and 2024, leading to mass migration of over 7 million Venezuelans since 2014, peaking after 2019 sanctions.
They Are Making Venezuela's Economy Scream: The Eighteenth Newsletter (2025) — Tricontinental: Institute for Social Research
Fertilizer prices in the US increased by 18% in 2025 due to global demand and trade disruptions, contributing to higher food production costs and potential consumer price inflation of up to 40% in extreme scenarios as seen in 2021.
Global agricultural markets in 2026: stabilizing prices, persisting risks — World Bank Blogs
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