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Trump Energy Pivot Roils Oil Amid Disruptions

[ March 25, 2026   //   Gary Burrows ]

ANALYSIS – The Trump administration is reshaping U.S. energy and foreign policy around oil supply and price stability, taking aggressive steps in Venezuela and Iran as global markets reel from oil-driven disruptions.

In recent days, the administration has moved to ease restrictions on both Venezuelan and Iranian oil, part of a broader effort to counter a sharp rise in crude prices linked to escalating conflict in the Middle East.

The Treasury Department authorized U.S. firms to conduct broader transactions with Venezuela’s state-run oil company and expand investment in the country’s energy sector, aiming to boost output and stabilize global supply.

At the same time, officials issued a temporary waiver allowing the sale of roughly 140 million barrels of Iranian oil already at sea, a step designed to ease shortages after attacks on shipping routes helped push oil prices above US$100 per barrel.

The moves reflect a striking, if pragmatic, shift: the administration is simultaneously confronting and economically engaging major oil-producing adversaries to contain energy-driven inflation and market volatility.

Oil-first Strategy

Since returning to office, President Donald Trump has emphasized fossil fuel production as the centerpiece of U.S. economic and geopolitical strategy, while deprioritizing renewable energy initiatives pursued by previous administrations.

Policy actions have included rolling back clean energy incentives and refocusing federal strategy on expanding global oil supply – not only domestically, but by leveraging control or influence over foreign reserves.

Nowhere is that clearer than in Venezuela. Following U.S. intervention earlier this year, Washington has sought to use the country’s vast oil reserves – the largest in the world – as a tool to influence global prices and geopolitical alignments.

Administration officials have framed the strategy as a way to drive oil prices lower and counter adversaries, but analysts say it underscores a broader pivot away from climate-focused policy toward fossil fuel dominance.

“This is an oil-first foreign policy,” said one energy analyst, noting that decisions in Venezuela and Iran are being driven as much by price pressures as by national security concerns.

Geopolitics Meets Supply Shock

The urgency stems from the growing impact of the U.S.-Iran conflict on global energy flows.

Iran has threatened to disrupt shipping through the Strait of Hormuz – a critical artery for global oil – and has already contributed to supply bottlenecks that tightened markets and lifted prices sharply.

Those disruptions have forced the White House to take increasingly unconventional steps, including tapping strategic reserves, loosening sanctions on rivals and encouraging foreign partners to boost output.

Critics say the approach is contradictory – simultaneously applying military pressure while easing economic restrictions on the same countries – and risks prolonging instability.

Supporters argue the measures are necessary to prevent a deeper economic shock.

Industry Implications

For energy markets, the policy shifts introduce both opportunity and uncertainty.

Opening Venezuela to greater U.S. and foreign investment could eventually increase supply, though analysts caution that years of underinvestment and infrastructure decay will limit near-term gains.

Meanwhile, temporary access to Iranian oil may provide short-term price relief but does little to resolve structural supply risks tied to ongoing conflict.

The result is a volatile environment for oil producers, logistics providers and global supply chains already strained by geopolitical tensions.

As the administration doubles down on fossil fuels, the longer-term trajectory of U.S. energy policy – and its implications for climate commitments – remains increasingly uncertain.

Tags: Donald J. Trump, US Treasury Department