The Iran war has led to the closure of the Strait of Hormuz, disrupting approximately 20% of global crude oil supply, thereby skyrocketing the strategic value of Venezuelan oil. Petróleos de Venezuela, S.A. (PDVSA) has signed new supply contracts aimed at positioning the country as a reliable alternative supplier to the United States. Meanwhile, Bitcoin prices remain near $70,000, with market sentiment in a state of extreme fear.
PDVSA Signs Supply Contracts with the US, Five Major Oil Giants Return
Five oil giants, including Chevron, BP, Eni, Shell, and Repsol, have been authorized to resume operations in Venezuela. ExxonMobil also plans to assess investment prospects in Venezuela in the coming weeks.
Venezuela revised the Hydrocarbons Law in January 2026, granting companies greater control and reducing taxes. All royalties and taxes will be deposited into an account managed by the U.S. Treasury, subject to Washington's oversight.
The Trump administration announced in January that Venezuela would transfer 30 million to 50 million barrels of crude oil to the United States at market prices.
Source: @WhiteHouse on X
Closure of the Strait of Hormuz Reshapes Global Oil Supply Routes
Three ships were attacked on March 11 alone. Shipping data shows that before the outbreak of the war, 160 ships passed through the strait each week, compared to only 55 in the first week of March.
Since January, Venezuela has shifted its crude oil exports from China (approximately 75% in 2025) to Western markets. It is estimated that $500 million of a $2 billion deal was returned to Caracas, indicating Washington's intention to maintain a continuous supply of Venezuelan oil.
Bitcoin Holds $70,000, Up 7% Since Iran War
The Cryptocurrency Fear & Greed Index is at 18 (Extreme Fear). Source: Alternative.me
Seven central banks are expected to make interest rate decisions between March 16 and 19, including the Federal Reserve's dot plot update. OPEC member states, including Saudi Arabia, Russia, and the United Arab Emirates, are expected to discuss potential production increase plans at their next meeting.