U.S. Intensifies Pressure on Venezuela Through Oil License Revocations
The Trump administration is escalating its campaign against Venezuela by revoking multiple permits and licenses that allow Western oil companies to conduct business in the country. This strategy aims to further apply economic and diplomatic pressure on President Nicolás Maduro.
Impact on Oil Operations
On a recent Sunday, Italian oil giant Eni announced that U.S. authorities had informed them that they could no longer receive payment for the gas they produce in Venezuela through oil supplies provided by the state-owned PDVSA, Venezuela’s principal oil company.
In light of these developments, Eni has expressed its intent to communicate with Washington to find a way to continue supplying gas in compliance with sanctions, indicating its commitment to adhering to international regulations.
Further Restrictions Imposed
Additionally, Global Oil Terminals, a trading firm owned by prominent Republican donor Harry Sargeant III, reported receiving notification from the U.S. government that it must wind down its licenses to export products from Venezuela. Sargeant stated that all operations must conclude by May 27, and all financial transactions with Venezuelan entities must be finalized by the upcoming Wednesday.
Other companies previously granted waivers under former President Joe Biden, such as Spain’s Repsol, France’s Maurel & Prom, and India’s Reliance, have not responded to inquiries regarding their status.
Context of the Revocation
This tightening of restrictions is part of a broader strategy by the Trump administration to apply pressure on Maduro, who has faced accusations of electoral fraud in recent elections. The administration’s measures are accompanied by Trump’s recent declaration of a 25% tariff on all imports from nations that purchase oil from Venezuela, a decision that could significantly disrupt global crude markets.
Economic Consequences
The revocation of licenses has had immediate effects on Venezuela’s black market exchange rate, which saw a substantial increase from approximately 90 bolívars to the dollar to 102 bolívars within a single week. This surge highlights the volatility of the Venezuelan economy, affected by ongoing sanctions and economic difficulties.
Human Impact and Opposition Responses
Over the past several years, socio-political instability has led to a mass exodus of Venezuelans, with over 7.7 million people fleeing the country—nearly a quarter of its population. Many have sought refuge in neighboring Latin American countries as the economy under Maduro’s government continues to falter. Opposition leaders have criticized the financial benefits from oil exports, asserting that these funds contribute to the regime’s oppressive tactics.
Conclusion
The U.S.’s recent actions against Eni and Global Oil Terminals follow the earlier cancellation of Chevron’s operational license in Venezuela, despite the company’s attempts to lobby for continued engagement in the region. With Venezuela exporting approximately 660,000 barrels of crude oil daily last year—key to its economy—these escalated restrictions may have long-term implications for both the Venezuelan regime and global oil markets.
As the situation develops, continued observation will be essential for understanding the broader implications of these actions on international relations and global energy supplies.
