U.S. eases Venezuela oil sanctions as Trump seeks to boost world oil supply during Iran war

U.S. eases sanctions on Venezuela's oil, allowing sales to boost global supply amid rising prices during the Iran conflict.

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, on Wednesday (March 18, 2026) 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.

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.