President Biden will lift gas- and oil-related sanctions on Venezuela after President Maduro and the opposition made a historic deal on next year’s elections, even though the agreement falls short of creating the conditions for a fair and free vote. 

The American Department of the Treasury announced late Wednesday that it would allow Venezuela to produce and export oil without limitations for six months. Earlier, Mr. Maduro signed a deal meant to assure transparency in elections. The agreement maintains a ban on some opposition figures ahead of Sunday’s primary elections.

America and other international officials will have to “keep a watchful eye” on Mr. Maduro and hold him accountable for the agreement, a senior director of the Atlantic Council’s Adrienne Arsht Latin America Center, Jason Marczak, says. “The road to reconciliation and genuine democratic progress remains a challenging one,” he adds. 

Mr. Biden’s sanctions easing may have been influenced by rising global energy costs. Oil prices reached $86 a barrel on Thursday morning, up from $82 on the day Hamas attacked Israel nearly two weeks ago. Large protests in several Mideast capitals following since debunked allegations that a Gaza hospital was hit by Israel on Wednesday appeared to be one reason for the climb. The Brent crude index rose more than 3 percent amid fears of war escalation.

The Department of the Treasury “has issued General Licenses authorizing transactions involving Venezuela’s oil and gas sector and gold sector, as well as removing the ban on secondary trading,” it said in a statement. This is the most extensive rollback of Trump-era restrictions on Venezuela to date. 

The announcement comes in response to a long-awaited deal reached by Mr. Maduro and the opposition that allows each party to choose its candidates for 2024. On Sunday, Venezuela’s opposition will hold its first primary election in 11 years. 

America “welcomes the signing of an electoral roadmap agreement between the Unitary Platform and Maduro representatives,” the Treasury statement said. 

The Venezuelan deal omits the release of political prisoners and fails to reverse bans imposed by the Maduro regime on several opposition figures. The leading opposition candidate, Maria Corina Machado, who is widely expected to win the primaries on Sunday, has been barred from holding office since June, when she expressed support for American sanctions.

Following the signing of the deal on Tuesday, the head of the opposition delegation, Gerardo Blyde, said the agreement could open the door to potentially allow opposition candidates barred from holding office to “recover their rights.” Yet the leader of the government delegation, Jorge Rodriguez, is pushing back. 

“If you received an administrative disqualification, you cannot be a candidate. I want to clarify that,” Mr. Rodriguez said.

The agreement is “a necessary step in the continuation of an inclusive dialogue process and the restoration of democracy in Venezuela,” the United Kingdom, Canada, America, and the European Union said in a joint statement. They also urged the release of the “unjustly detained,” assurances of “independence of the electoral process,” press freedoms, and “respect for human and political rights.”  

Negotiations between the ruling regime and the opposition began in 2021 in Mexico, brokered by Norway. Mr. Maduro has obstructed the talks, seeking an ease in American sanctions and an unfreezing of Venezuelan funds. Washington imposed sanctions on Caracas after the 2018 elections, which were considered a sham by American officials. 

Wednesday’s easing of sanctions gives Venezuela a six-month license to conduct oil and gas transactions in Venezuela. “The license will be renewed only if Venezuela meets its commitments under the electoral roadmap as well as other commitments with respect to those who are wrongfully detained,” the Department of the Treasury said. It also authorizes deals with the Venezuelan state-owned gold mining company Minerven.