US eases Venezuela oil sanctions as Trump seeks to boost world oil supply during Iran war

U.S. companies will be allowed to do business with Venezuela’s state-owned oil and gas company after the Treasury Department eased sanctions, with some limitations, yesterday [Macau time] as the Trump administration looks for ways to boost global oil supplies during the Iran war.

The Treasury issued a broad authorization allowing Petróleos de Venezuela S.A., or PDVSA, to directly sell Venezuelan oil to U.S. 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 U.S. ports to be moved on U.S.-flagged vessels. The 1920s law, designed to protect the American shipbuilding sector, is often blamed for making gas more expensive.

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.