U.S. Eases Venezuela Oil Sanctions and Waives Jones Act to Offset Iran War Supply Shock
The U.S. Treasury issued a broad license easing sanctions so PDVSA can sell Venezuelan oil directly to U.S. companies and on global markets, aiming to spur investment in Venezuela’s oil sector and boost supply amid the Iran war. The license limits eligibility to companies that existed before Jan. 29, 2025, requires payments to be routed into a U.S.-controlled account rather than to sanctioned entities, and continues to bar deals involving Russia, Iran, North Korea, Cuba, certain Chinese entities and transactions in Venezuelan debt or bonds.
📌 Key Facts
- The Treasury Department issued a broad license that explicitly allows PDVSA to sell Venezuelan oil directly to U.S. companies and on global markets, reversing years of tight U.S. restrictions.
- The license requires all payments for Venezuelan oil to be deposited into a special U.S.-controlled account rather than paid directly to sanctioned Venezuelan entities, giving Washington effective control over Venezuela’s oil revenues.
- Only companies that existed before Jan. 29, 2025 are eligible to use the license to buy Venezuelan oil and conduct related transactions.
- The license continues to prohibit deals involving Russia, Iran, North Korea, Cuba and certain Chinese entities, and it bars transactions in Venezuelan debt or bonds.
- The administration says the move is aimed at incentivizing new investment in Venezuela’s oil sector and boosting global oil supply amid the Iran war, according to AP-sourced reporting.
📊 Relevant Data
Black households in the US spend 43% more of their income on energy costs compared to White households, while Hispanic households spend 20% more, based on 2020 data.
Report: Low-Income Households, Communities of Color Face High 'Energy Burden' — ACEEE
Black and Latino households pay 13–18% more on average for energy per square foot of housing compared to White households, as per 2025 research.
Black Americans account for about 17% of active-duty military personnel but roughly 14% of the total US population, indicating overrepresentation as of 2025.
A Growing Warning From Black Veterans: The Military Isn't Safe for Us — Yahoo News
In California, unemployment rates in 2025 were 4.9% for White workers, compared to higher rates for other groups, with Nevada and California having the highest for White workers at 5.2% and 4.9%.
2025 Q1 | State Unemployment by Race and Ethnicity — Economic Policy Institute
Higher oil prices place the highest burdens on those least able to afford them, with soaring gas prices impacting individual families' budgets disproportionately as of 2026.
Oil price spikes expected to have demand repercussions in 2026 — AOL
📰 Source Timeline (2)
Follow how coverage of this story developed over time
- Confirms that the Treasury Department’s broad license explicitly allows PDVSA to sell Venezuelan oil directly to U.S. companies and on global markets, after years of tight U.S. restrictions.
- Specifies that only companies that existed before Jan. 29, 2025, are eligible to use the license to buy Venezuelan oil and conduct related transactions.
- Clarifies that all payments must go into a special U.S.-controlled account rather than directly to sanctioned Venezuelan entities such as PDVSA, giving Washington effective control over Venezuela’s oil cash flow.
- Restates that deals involving Russia, Iran, North Korea, Cuba and certain Chinese entities, as well as transactions in Venezuelan debt or bonds, remain prohibited under the license.
- Direct AP sourcing underscores the administration’s stated goal to incentivize new investment in Venezuela’s oil sector while boosting global supply during the Iran war.