US raises threat of oil sanctions against Venezuela

The US could impose sanctions on Venezuela's oil sector as it ratchets up pressure on President Nicolás Maduro to guarantee free and transparent elections, US secretary of state Rex Tillerson (pictured) said on Sunday.

The move would see Washington limit imports of Venezuelan crude and exports of US refined products to the South American country, which is mired in a deepening political and economic crisis.

"One of the aspects of considering sanctioning oil is what effect would it have on the Venezuelan people? Is it a step that might bring this to an end more rapidly?" Tillerson said during a news conference in Buenos Aires.

He added that any oil restrictions would aim to put pressure on Maduro to "return to the constitution" ahead of presidential elections slated to take place by April.

The US last year imposed sanctions on Venezuelan officials and a ban on buying Venezuelan debt but until now has avoided talk of oil trade limits.

Such a move could prove devastating for the OPEC country, which relies on oil for around 95% of its export earnings.

"We are looking at options and we are looking at how to mitigate the impacts on US business interests and on other countries in the region," Tillerson said.

The comments were backed by Argentine foreign minister Jorge Faurie, who said the country could follow Washington's lead. But he added that any measures "must never harm the Venezuelan people."

In July, the US accused Maduro of leading a dictatorship after he appointed a pro-government constituent assembly to replace the opposition-controlled legislature. The new body was given a mandate to rewrite the constitution.

The assembly is this week expected to confirm a date for presidential elections, which political opponents say are already being rigged to favor Maduro.

Nearly all of Venezuela's most popular leaders have been jailed, banned from running or forced into exile.