Treasury Secretary Scott Bessent indicated that the United States could lift certain sanctions on Venezuela in the coming months, signaling a potential pivot in Washington’s approach to the oil-rich nation. The move follows renewed diplomatic engagement and economic incentives aimed at stabilizing the region.
- U.S. Treasury Secretary Scott Bessent announced potential lifting of targeted Venezuela sanctions in early 2026.
- Up to $3 billion in frozen Venezuelan oil revenues could be released via an escrow mechanism.
- Export capacity to the U.S. could increase by 300,000 barrels per day if sanctions are eased.
- The move is contingent on Venezuela’s progress in transparency and IMF cooperation.
- Energy firms like ExxonMobil and Chevron may re-enter the Venezuelan market.
- Regional oil prices could drop 3–5% if sanctions are lifted.
Treasury Secretary Scott Bessent confirmed during a speech in Golden Valley, Minnesota, on January 8, 2026, that the Biden administration is considering the phased removal of targeted sanctions on Venezuela’s petroleum sector. While no specific timeline was provided, Bessent emphasized that the decision hinges on Venezuela’s progress in meeting international transparency standards and cooperation with multilateral institutions, including the International Monetary Fund. The sanctions in question, originally imposed in 2017 and expanded in 2020, have restricted Venezuela’s access to U.S. financial markets and limited its ability to export crude oil legally. Under the proposed relaxation, up to $3 billion in frozen Venezuelan oil revenues could be unfrozen and channeled through a structured escrow mechanism to support humanitarian aid and debt restructuring. Market analysts note that lifting these sanctions could allow Venezuela to increase oil exports to the U.S. by up to 300,000 barrels per day within six months, potentially reducing global crude prices by 3–5%. Major energy firms including ExxonMobil and Chevron have expressed interest in re-entering the Venezuelan market, pending regulatory clarity. The policy shift may also influence regional dynamics, particularly in Colombia and Brazil, where energy importers could see lower fuel costs. However, human rights groups caution that any easing should be conditional on tangible improvements in governance and electoral transparency.