In attempts to exert pressure on Venezuela’s government, the U.S. has targeted the country's oil industry. Harry Sargeant III, a GOP supporter known for his efforts to mediate U.S.-Venezuela relations, had his oil-trading company, Global Oil Terminals, ordered by the Trump administration to exit Venezuela. This action was part of a broader move that also affected other foreign oil companies such as Repsol and Chevron. The deadline given to these companies to cease operations by late May is a part of the U.S. government's strategy to isolate Venezuela for various reasons, including its delays in accepting Venezuelan deportees.

Sargeant, recognized for his role in facilitating trade ties between the U.S. and Venezuela, has had his company involved in transporting Venezuelan heavy oil for paving U.S. roads since obtaining its primary license in May 2024. However, the recent revocation of all company licenses in Venezuela, as instructed by the Treasury Department, indicates a swift withdrawal process.

The imposition of a 25% tariff by the U.S. on countries purchasing Venezuelan oil, declared through an executive order by Trump, has led buyers like India’s Reliance Industries to reduce their dealings with Venezuela. Companies like Repsol and Reliance, keen on staying compliant with U.S. sanctions, had sought authorization to operate in Venezuela.

Despite initial hopes for a more moderate approach by Trump, frustrations arose within the administration due to perceived delays by the Maduro government in addressing Venezuelan migrant issues. The ongoing crisis in Venezuela has pushed millions to flee economic distress and political oppression in recent years.