WASHINGTON, D.C. — The U.S. Treasury Department eased sanctions on Venezuela's state-owned oil and gas company, Petróleos de Venezuela, S.A., on March 18, 2026, with some limitations. The Treasury Department issued a broad authorization allowing the company to sell Venezuelan oil directly to U.S. companies and on global markets.

President Donald Trump waived for 60 days the Jones Act requirement that goods shipped between U.S. ports be moved on U.S.-flagged vessels. The U.S. license provides targeted relief from sanctions without lifting the penalties altogether.

The license allows companies that existed before January 29, 2025, to buy Venezuelan oil and engage in transactions normally banned under U.S. sanctions, reopening trade to global markets. Under the license, payments for Venezuelan oil must be sent to a special U.S.-controlled account and may not go directly to sanctioned entities such as PDVSA. The license prohibits transactions involving Russia, Iran, North Korea, Cuba, and some Chinese entities.

The license also prohibits transactions involving Venezuelan debt or bonds and does not allow payments in gold or cryptocurrency, including the petro token. White House press secretary Karoline Leavitt said the Jones Act waiver would help mitigate short-term disruptions to the oil market during the Iran war. She said the waiver would allow vital resources like oil, natural gas, fertilizer, and coal to flow freely to U.S. ports.

Iran halted traffic through the Strait of Hormuz, where one-fifth of the world's oil typically passes from the Persian Gulf to customers worldwide. Global oil prices spiked after Iran halted the traffic. A Treasury official, who was not authorized to discuss the matter publicly and spoke on condition of anonymity, said the Treasury's license is designed to incentivize new investment in Venezuela's energy sector and to benefit both the U.S. and Venezuela while increasing the global oil supply.

Venezuela has the world's largest oil reserves. Venezuelan oil production declined from 3.5 million barrels per day in 1999 to less than 400,000 barrels per day in 2020. Venezuela's annual inflation rate was 475% in 2025, according to the central bank.

In 2019, the Treasury Department under the Trump administration sanctioned PDVSA to punish Maduro's government for corrupt, anti-democratic, and criminal activities, locking Venezuela out of world oil markets. The sanctions forced Venezuela to sell its remaining oil output at a discount of about 40% below market prices to buyers such as China and in other Asian markets. Venezuela began accepting payments for oil in Russian rubles, bartered goods, or cryptocurrency.