Amid intensified war in the Middle East, US companies have been allowed to do business with Venezuela’s state-owned oil and gas company after the US Treasury Department eased sanctions, with some limitations, on Wednesday as the Trump administration looks for ways to boost global oil supplies during the Iran war.
Treasury Department issues broadย authorisation forย Venezuelaย
In this regard, the Treasury Department issued a broad authorisation allowing Petrรณleos de Venezuela SA, or PDVSA, to directly sell Venezuelan oil to US companies and on global markets, a massive shift after Washington for years had largely blocked dealings with Venezuela’s government and its oil sector.
Separately, the White House said President Donald Trump would waive, for 60 days, Jones Act requirements for goods shipped between US ports to be moved on US-flagged vessels. The 1920s law, designed to protect the American shipbuilding sector, is often blamed for making gas more expensive.
Move takenย to ease soaring oil pricesย ย
The moves highlight the increased pressure that the Republican administration is under to ease soaring oil prices as the United States, along with Israel, wages war with Iran. Global oil prices have since spiked as Iran halted traffic through the narrow Strait of Hormuz, through which one-fifth of the world’s oil typically passes.
Drivers in the United States are paying the highest pump prices in about 2 1/2 years. The national average for a gallon of regular gasoline topped USD 3.84 on Wednesday, according to AAA, compared with USD 2.98 before the war began on Feb. 28.
Even before that, voters were worried about higher living costs, and fuel prices are now adding to concerns for Republicans heading into the election season with their control of Congress at stake in November.
Gas prices are up and we know they’re up: JD Vanceย
“Gas prices are up and we know they’re up. And we know that people are hurting because of it. And we’re doing everything that we can to ensure that they stay lower,” Vice President JD Vance said at an event in Auburn Hills, Michigan. “This is a temporary blip.”
The Treasury’s license is designed to incentivise investment in Venezuela’s energy sector and is intended to benefit both the US and Venezuela, while increasing the global oil supply, a Treasury official told The Associated Press. The official was not authorized to discuss the matter publicly and spoke on condition of anonymity.
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