Venezuela tries to mend oil alliance with Iran as US poised to restart sanctions

The oil alliance between Venezuela and Iran deteriorated last year when Venezuela fell behind on payments, but Venezuela wants to mend relations in the face of looming U.S. sanctions.

The situation is growing dire. A review of shipping data and documents from Venezuela's oil company PDVSA show that Venezuela fell behind in payments to Iran, a shortfall that worsened when the U.S. began to issue licenses in late 2022. Those authorizations prompted the state firm to reassign cargoes originally planned for Iran to cash-paying customers.

To salvage the partnership, Venezuela is rushing to fulfill terms of a three-year-old alliance that has involved hundreds of millions of dollars in oil swaps and contracts. The nation is trying to settle pending debt by accelerating deliveries of heavy crude and fuel cargoes to Iran.