The Treasury Department issued licenses Friday for oil companies including Chevron and certain European rivals to resume operations in Venezuela. This move represents a significant shift in US policy toward the oil-rich nation, potentially increasing global supply.

Venezuela holds the world's largest oil reserves but production has collapsed under sanctions. The licenses mark the first major relaxation of restrictions imposed years ago, allowing American energy firms to return to the market with proper oversight.

The decision could bring much-needed revenue to Venezuela's struggling economy while providing additional supply to global markets. Oil companies will now navigate complex regulatory requirements to restart operations in a country with challenging operating conditions.