U.S. Eases Venezuela Oil Sanctions and Waives Jones Act as Iran War Drives Brent Above $108
The Treasury Department issued a broad license allowing state oil firm PDVSA to sell Venezuelan crude directly to U.S. companies and on global markets, but only to companies that existed before Jan. 29, 2025, with all payments required to go into a special U.S.-controlled account and transactions involving Russia, Iran, North Korea, Cuba, certain Chinese entities or Venezuelan debt remaining prohibited. The administration framed the March 18 move as an effort to boost supplies and lower prices amid an escalation of the Iran war — including attacks that disrupted Gulf oil facilities and effectively closed the Strait of Hormuz — after Brent spiked above $108 a barrel.
đź“Ś 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 after years of tight U.S. restrictions.
- Only companies that existed before Jan. 29, 2025, are eligible to use the license to buy Venezuelan oil and conduct related transactions.
- All payments for sanctioned oil sales must be routed into a special U.S.-controlled account rather than paid directly to sanctioned Venezuelan entities, giving Washington effective control over Venezuela’s oil cash flow.
- 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 sanctions easing was announced on Wednesday, March 18, as a same-day response to roughly a 5% spike in oil prices that pushed Brent above $108 per barrel.
- The administration framed the move as part of a scramble to boost global oil supplies and lower prices by incentivizing new investment in Venezuela’s oil sector, directly linking the action to Iran’s intensifying attacks on Gulf neighbors’ oil facilities and the effective closure of the Strait of Hormuz.
đź“Š Relevant Data
Puerto Rico, a non-contiguous U.S. territory affected by Jones Act waivers, has a population that is approximately 95% Hispanic or Latino as of 2023, making it a majority-minority area with potentially higher energy import costs due to shipping restrictions.
US States by Race 2026 - World Population Review — World Population Review
Hawaii, another non-contiguous territory impacted by the Jones Act, has a diverse population with 37.2% Asian, 24.3% White, 10.1% Native Hawaiian or Other Pacific Islander, and 1.6% Black as of 2023, constituting a majority-minority state where Jones Act restrictions contribute to higher energy costs from foreign sources.
Population Distribution by Race/Ethnicity | KFF State Health Facts — KFF
Racial disparities in U.S. household energy burdens are partly driven by differences in average building age, with older homes in majority Black and Latino census tracts contributing to higher energy costs, as these households pay above the 6% income threshold for energy burden.
Energy burden: Exploring the intersection of race, income, and building characteristics — ScienceDirect
Black households in the U.S. experience higher space-heating energy demands, which is a main driver of racial gaps in energy burdens, contributing to overall disparities in electricity costs and consumption.
Racial disparities in the energy burden beyond socio-economic inequality — ScienceDirect
đź“° Source Timeline (3)
Follow how coverage of this story developed over time
- 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.