The United States has relaxed sanctions on Venezuela’s state-owned oil company, Petróleos de Venezuela.
The development was communicated by the US Treasury Department in a post on X.
The move comes amid the global oil shortage caused by the ongoing Middle East conflicts as the US-Israeli war against Iran rages on.
The war has led to the blockade of the Strait of Hormuz, a critical oil shipping route.
A general licence issued on Wednesday by the US Treasury’s Office of Foreign Assets Control (OFAC) now allows the company to sell oil directly to US companies and on the global market.
“Under President Trump’s leadership, the United States is working in partnership with the Government of Venezuela to reopen and restore Venezuela’s energy sector.
“Today, the Treasury Department’s Office of Foreign Assets Control issued a license broadly authorising established US entities to engage in many types of transactions with Venezuela’s state-owned oil company, Petróleos de Venezuela, S.A. (PdVSA), and its subsidiaries.
“This license will benefit both the United States and Venezuela, while supporting the global energy market by increasing the supply of available oil.
“It will also help incentivise new investment in Venezuela’s energy sector,” the statement read.
