Iran is swapping its gasoline for Venezuelan jet fuel in a deal agreed by the two countries’ national oil companies, a report says.

Tehran and Caracas have ramped up cooperation in the face of intensified US sanctions on state-run firms Petroleos de Venezuela and National Iranian oil Company (NIOC).

A full swap of Venezuela's jet fuel for the Iranian gasoline was agreed between NIOC and PDVSA last year, suggesting long-term shipments, Reuters reported citing what it called people with knowledge of the matter.

The news agency has a special interest in Iran’s oil and gas trade which is under the most draconian US sanctions, using often unnamed sources apparently linked to the American government to report on Iranian shipments in an evident bid to stop them.

However, Iran has never tried to hide its assistance to Venezuela which is suffering severe gasoline shortages as a result of the crippling US sanctions.