US Senator Richard Lugar, the highest-ranking Republican in the US Senate Committee on Foreign Relations, is afraid that sanctions on state-run oil holding Petróleos de Venezuela (Pdvsa) resulted from "Venezuela's unwillingness to break relations with terrorist organizations and with countries which sponsor them."

The US Government on Tuesday imposed sanctions on seven foreign companies, including Pdvsa, for doing business with Iran. According to Washington, these firms have helped developed a controversial nuclear program undertaken by Iran.

The move puts Venezuela's President Hugo Chávez in an uncomfortable position despite the temptation to retaliation, according to Simon Wardell, energy research market at IHS Global Insight, Reuters quoted.

"As a last resort, I do not think that Chávez will be able to do much with regard to sanctions. He could speak a lot and make lot of noise, but he will continue selling oil to the United States," Wardell reasoned.

Source:ElUniversal.com