The US has relaxed sanctions on PDVSA, allowing Venezuela's state-owned oil company to sell directly to US companies and global markets, with payments routed through US-controlled accounts. The move comes amid global energy supply concerns as Middle East tensions drive crude prices to $110 a barrel. Washington views increased Venezuelan production as critical to stabilizing markets amid the Iran conflict.

Venezuela holds the world's largest proven oil reserves at 300bn barrels, though production collapsed to 950,000 barrels daily last year after years of corruption and mismanagement. Interim president Delcy Rodríguez has implemented reforms weakening PDVSA's grip on the sector, signing agreements with international energy companies including Shell and Repsol. Chevron currently operates at 240,000 b/d through joint ventures with PDVSA.

The sanction relaxation follows Maduro's arrest on drug trafficking charges and comes as the US seeks to incentivize new investment in Venezuela's energy sector. Industry experts warn revitalizing the industry could take years without security and financial guarantees. The timing coincides with a Middle East oil crisis creating market opportunities for Venezuela, which has historically been considered a safer investment region than the Gulf.