Mar 19, Kathmandu - The United States has granted American companies permission to trade directly with Venezuela's government-controlled oil and gas firms. This decision was announced by the Trump administration on Wednesday, amidst increasing global pressure to boost oil supplies amid ongoing conflicts with Iran.

The U.S. Department of the Treasury has authorized Venezuela’s state-owned company, Petróleos de Venezuela (PDVSA), to sell oil directly to American companies and the international market. This marks a major departure from previous sanctions that restricted dealings with Venezuela’s government and its oil sector.

Additionally, President Trump has decided to temporarily suspend provisions of the Jones Act for 60 days. This allows ships flying the American flag to transport goods between U.S. ports without strictly adhering to the act, easing logistical constraints for a limited period.

The ongoing conflict with Iran, coupled with the closure of the Strait of Hormuz—accounting for nearly one-fifth of the world's oil trade—has driven global oil prices higher. As Iran and Israel remain embroiled in conflict, crude prices have surged.

According to the American Automobile Association, the average national gas price in the U.S. reached $3.84 per gallon on Wednesday, up from $2.98 before the conflict escalation.