U.S. Eases Venezuela Oil Sanctions and Waives Jones Act as Iran War Drives Brent Above $108
On March 18 the U.S. Treasury issued a broad license easing sanctions on Venezuela’s state oil company PDVSA, allowing sales directly to U.S. firms and on global markets while requiring payments into a U.S.-controlled account and limiting buyers to companies that existed before Jan. 29, 2025. The license bars transactions involving Russia, Iran, North Korea, Cuba and certain Chinese entities and Venezuelan debt, and the administration framed the move as a short-term effort to spur investment and boost global supply after Iran’s attacks pushed Brent above $108 a barrel.
📌 Key Facts
- On March 18, 2026, the U.S. Treasury issued a broad license easing sanctions that explicitly allows Venezuela’s state oil company PDVSA to sell oil directly to U.S. companies and on global markets after years of tight U.S. restrictions.
- The license is limited to companies that existed before Jan. 29, 2025, and continues to bar deals involving Russia, Iran, North Korea, Cuba and certain Chinese entities, as well as transactions in Venezuelan debt or bonds.
- All payments for oil under the license must be deposited into a U.S.-controlled special account rather than paid directly to sanctioned Venezuelan entities, giving Washington effective control over Venezuela’s oil cash flow.
- The administration framed the move as a short-term response to the Iran war—intended to boost global supply, lower prices and incentivize new investment in Venezuela’s oil sector, not a wholesale reset of U.S. policy toward Venezuela.
- The easing was announced the same day oil prices jumped (a roughly 5% spike) and Brent crude rose above $108 per barrel, a surge tied to Iran’s intensified attacks on Gulf oil facilities and the effective closure of the Strait of Hormuz.
- The decision was reported alongside other economic developments (including the Federal Reserve holding rates and planning only one cut this year), highlighting how the oil move is being read in the broader context of U.S. economic and inflation concerns.
📊 Relevant Data
Black households in the US spend an average of 5.1% of their income on energy costs, compared to the national average of 3.2%, with this disparity driven by factors such as older and less energy-efficient homes, exacerbating the impact of oil price spikes.
Rising Energy Costs Weigh Heaviest on Black Households — The Sacramento Observer
The Venezuelan immigrant population in the US grew by 318% from 2010 to 2023, reaching approximately 1.2 million by 2026, with more than half arriving in the past five years, coinciding with the escalation of US sanctions and Venezuela's economic crisis.
7 facts about Venezuelans in the US — Pew Research Center
Energy and oil companies, including Shell, Phillips 66, and Chevron, have lobbied US officials on Venezuela sanctions implementation and Treasury licenses throughout the 2020s, influencing policy adjustments.
📰 Source Timeline (4)
Follow how coverage of this story developed over time
- PBS explicitly frames the sanctions easing as targeting Venezuela's state-owned oil company (PDVSA) in a bid to tame oil prices rising due to the Iran war.
- Confirms the timing as part of a broader March 18, 2026 news wrap that also notes the Fed holding rates and planning only one cut this year, reinforcing that the oil move is being read alongside domestic economic policy decisions.
- Reiterates that the policy is being publicly presented as a short-term response to the Iran war oil shock, not a wholesale reset of Venezuela policy.
- Places the Venezuela sanctions easing explicitly on Wednesday, March 18, as part of a same‑day response to another 5% spike in oil prices, pushing Brent above $108 per barrel.
- Frames the sanctions relief more squarely as part of the Trump administration’s scramble to “boost oil supplies and lower prices” as the Iran war escalates.
- Directly links the U.S. move to Iran’s intensifying attacks on Gulf neighbors’ oil facilities and its effective closure of the Strait of Hormuz, underscoring the scale of the supply disruption Washington is reacting to.
- 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.