US to Partially Lift Sanctions on Venezuela to Sell Crude Oil Under New Energy Deal

The United States on Wednesday unveiled a major energy initiative with Venezuela, rolling back select sanctions to allow Venezuelan crude oil to be marketed globally, officials said. The move, described by the Trump administration as a “historic deal,” aims to safeguard U.S. interests, stabilise Venezuela’s energy sector and generate revenue for both nations.

According to a fact sheet released by the U.S. Department of Energy, all proceeds from the sale of Venezuelan crude and oil products will be deposited initially in U.S.-controlled accounts at internationally recognised banks. This, the administration said, will ensure transparency and proper distribution of funds for the benefit of both American and Venezuelan citizens.

The deal is expected to begin with the sale of approximately 30 million to 50 million barrels of oil, with further sales to continue indefinitely. As part of the agreement, the United States will supply diluent (light crude) to Venezuela to upgrade its very heavy crude, facilitating transportation and export.

In addition, select oilfield equipment, parts and services will be imported to help modernise production facilities, offset decades of underinvestment and support near‑term growth in Venezuela’s oil sector.

U.S. Secretary of Energy Chris Wright said the initiative will focus on Venezuelan crude stored both onshore and offshore, as well as ongoing production. “We’re working directly in cooperation with the Venezuelans,” he said, adding that the arrangement will help stabilise production and create conditions for potential long‑term investment by American oil companies.

The announcement follows a U.S. military operation on January 3, 2026, that resulted in the capture of Venezuelan leader Nicolás Maduro, part of broader efforts by the Trump administration to restore “prosperity, safety and security” across the Western Hemisphere.

On Tuesday, U.S. President Donald Trump stated that interim authorities in Venezuela would hand over between 30 and 50 million barrels of sanctioned oil, which would be sold at market prices. Trump said he would retain control over the proceeds to ensure the funds are used to benefit the people of both countries.

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