The Treasury Department eased oil sanctions Wednesday on Venezuela to boost the world's oil supply amid the U.S. and Israel's war with Iran.

The department issued a broad authorization allowing Petróleos de Venezuela S.A, or PDVSA, to directly sell Venezuelan oil to U.S. companies and on global markets, after years of largely blocked dealings with Venezuela’s government and its oil sector, The Associated Press reported.

The White House also said that President Trump would implement a waiver for 60 days of the Jones Act requirements for goods shipped between U.S. ports to be moved on U.S.-flagged vessels. The century-old law was designed to protect the U.S. shipbuilding sector.

White House press secretary Karoline Leavitt said the Jones Act waiver would help “mitigate the short-term disruptions to the oil market” during the Iran war and “allow vital resources like oil, natural gas, fertilizer, and coal to flow freely to U.S. ports.”

An anonymous Treasury official told the AP that the department's license is designed to incentivize new investment in Venezuela’s energy sector and is intended to benefit the U.S and Venezuela, while increasing the global oil supply.

Since the U.S. military arrested Venezuelan President Nicolás Maduro in January, Trump has said the U.S. would effectively “run” Venezuela and sell its oil.

While the Treasury's license provides targeted relief from sanctions, it does not completely lift the penalties. The license allows companies that existed before Jan. 29, 2025, to purchase Venezuelan oil and engage in transactions that would normally be banned under U.S. sanctions. Also, payments cannot go directly to sanctioned Venezuelan entities such as PDVSA, but must be sent to a special U.S.-controlled account. This allows the U.S. to control the cash flow.

Deals involving Russia, Iran, North Korea, Cuba, and some Chinese entities will also not be allowed, in addition to transactions involving Venezuelan debt or bonds.