Pressure has been building on the Biden administration to begin loosening sanctions on Venezuela after President Nicolas Maduro freed two American prisoners and promised to resume negotiations with his opponents. The U.S. engagement comes as Venezuela’s financial lifeline to Russia is fraying under sanctions on Moscow following its bombardment of Ukraine.
Venezuela has been under U.S. oil sanctions since 2019 and could reroute crude if those restrictions were lifted.
Countries under U.S. sanctions like Iran and Venezuela are seen as the most likely to benefit as President Joe Biden seeks to mitigate the impact from a ban on Russian oil imports that may aggravate the highest inflation in four decades.
Venezuelan oil might help ease inflation pressures in the medium term, even if it would take time for significant supplies to reach the U.S.