U.S. Eases Venezuela Oil Sanctions and Waives Jones Act While Rejecting Oil and Gas Export Curbs Amid Iran War Price Spike
On March 18, amid a sharp Iran-war-driven spike in oil prices that pushed Brent above $108, the U.S. Treasury issued a broad license easing sanctions on Venezuela’s state oil company PDVSA—allowing companies that existed before Jan. 29, 2025 to sell Venezuelan oil to U.S. firms and on global markets while routing payments into a U.S.-controlled account and banning deals with Russia, Iran, North Korea, Cuba and certain Chinese entities or transactions in Venezuelan debt. The administration said the short-term move aims to spur investment and boost supply as the Iran war disrupts shipments, and the White House also denied it is considering oil and gas export restrictions amid warnings such limits would likely backfire.
📌 Key Facts
- On March 18, 2026, the U.S. Treasury issued a broad license easing Venezuela sanctions that explicitly allows PDVSA to sell Venezuelan oil directly to U.S. companies and on global markets, reversing years of tight restrictions.
- The license limits eligibility to companies that existed before Jan. 29, 2025, and requires all payments be placed into a special U.S.-controlled account rather than paid directly to sanctioned Venezuelan entities, giving Washington effective control over Venezuela’s oil revenues.
- The license continues to prohibit deals involving Russia, Iran, North Korea, Cuba and certain Chinese entities, as well as transactions in Venezuelan debt or bonds.
- The administration framed the move as a short-term response to the Iran war oil shock—intended to incentivize new investment in Venezuela’s oil sector and boost global supply to lower prices—not a wholesale reset of U.S. Venezuela policy.
- The action coincided with a same-day roughly 5% oil price jump that pushed Brent above $108 per barrel and was linked to Iran’s intensifying attacks on Gulf neighbors’ oil facilities and the effective closure of the Strait of Hormuz, which the U.S. cited as the supply disruption it was responding to.
- The White House said it is not planning oil or gas export restrictions after rumors they were being considered; Columbia University energy scholars warned export limits would likely backfire, providing limited consumer relief while imposing economic and geopolitical costs.
- News coverage presented the sanctions easing alongside other domestic economic developments (for example, the Fed holding rates and planning only one cut this year), indicating policymakers and markets are reading the oil move in a broader economic context.
📊 Relevant Data
Hispanic households in the US faced an energy burden 24% higher than the national average in 2024, meaning they spend a larger share of their income on energy costs.
The Unseen Cost: Why Hispanic Communities Pay More for Energy — Hispanic Energy Council
Black and Latino households pay 13-18% more on average for energy per square foot of housing compared to White households.
Race, rates, and energy insecurity: exploring racial disparities in residential energy rates across the United States — Nature Scientific Reports
The Strait of Hormuz accounts for approximately 20% of global oil supply, with about 20 million barrels per day of crude oil and petroleum products transiting in 2025.
2026 Hormuz Strait Disruption: Oil Market Impacts and Supply Risks — LNRG Technology
Easing US sanctions on Venezuela is projected to boost the country's oil production by no more than 300,000 barrels per day in 2026.
US to Ease Venezuela Sanctions to Unlock More Oil Amid Iran War — Bloomberg
Jones Act waivers can reduce shipping costs by allowing foreign tankers to transport fuel between US ports, potentially easing regional fuel price pressures during supply disruptions.
Trump temporarily waives shipping restrictions amid surging oil and gas prices — Politico
📰 Source Timeline (5)
Follow how coverage of this story developed over time
- A White House/administration official stated by email that 'Oil and gas export restrictions are not under consideration.'
- Axios reports that rumors of possible export restrictions had been circulating in recent days as officials search for ways to contain price spikes.
- Columbia University energy scholars are quoted warning that export limits, while legally feasible, would likely 'backfire' by offering limited consumer relief while imposing economic and geopolitical costs.
- 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.