Pull to refresh
Logo
Daily Brief
Following
Why
America's oil squeeze on Cuba

America's oil squeeze on Cuba

Force in Play
By Newzino Staff | |

How the U.S. is leveraging tariff threats and naval actions to cut off Cuba's last fuel lifelines amid humanitarian warnings

February 5th, 2026: U.S. Announces $6M Aid as Díaz-Canel Accuses 'Energy Blockade'

Overview

The United States has imposed economic pressure on Cuba for 64 years. Now, for the first time, Washington is threatening to punish any country that sells oil to the island. President Trump's January 29 executive order creates a tariff mechanism targeting third countries that supply Cuban fuel—a significant escalation that goes beyond traditional bilateral sanctions to coerce allies and trading partners into joining an energy blockade. Since then, the UN has warned of a potential humanitarian collapse as oil dwindles, while blackouts persist nationwide.

The timing is deliberate. Since U.S. forces captured Venezuelan President Nicolás Maduro on January 3, Cuba has lost access to Venezuelan crude, which provided a third of its oil imports. Mexico, Cuba's remaining major supplier, paused shipments the day before Trump signed the order and confirmed $496 million in 2025 supplies via Pemex. With its antiquated power grid already failing—five nationwide blackouts in the past year—and no new suppliers stepping in despite Chinese support pledges, Cuba faces what analysts describe as its worst economic crisis since the 1990s Soviet collapse. The Central Intelligence Agency assesses the economy is 'on the brink' but does not predict imminent regime change; recent US aid of $6 million targets hurricane relief amid the shortages.

Key Indicators

77%
Oil supply at risk
Combined share of Cuba's oil imports from Venezuela (33%) and Mexico (44%) before the crisis
5
National blackouts in one year
Cuba's power grid collapsed entirely five times between October 2024 and December 2025; outages persist into February 2026
64 years
Embargo duration
The U.S. trade embargo on Cuba, imposed in 1962, is the longest in modern history
1+ million
Cubans who fled since 2020
More than one in ten Cubans have left the country in the past five years
$496M
Pemex oil to Cuba in 2025
Mexico's state oil company supplied this value through September 2025 before pausing shipments

Interactive

Exploring all sides of a story is often best achieved with Play.

Ever wondered what historical figures would say about today's headlines?

Sign up to generate historical perspectives on this story.

Sign Up

Debate Arena

Two rounds, two personas, one winner. You set the crossfire.

People Involved

Donald Trump
Donald Trump
President of the United States (Signed executive order declaring national emergency over Cuba)
Marco Rubio
Marco Rubio
U.S. Secretary of State (Leading diplomatic pressure campaign against Cuba)
Bruno Rodríguez Parrilla
Bruno Rodríguez Parrilla
Cuban Foreign Minister (Leading Cuba's diplomatic response to U.S. pressure)
Claudia Sheinbaum
Claudia Sheinbaum
President of Mexico (Pemex discloses major past oil supplies amid U.S. tariff pressure)
Howard Lutnick
Howard Lutnick
U.S. Secretary of Commerce (Tasked with determining which countries face Cuba-related tariffs)
Guo Jiakun
Guo Jiakun
Chinese Foreign Ministry Spokesman (Condemned U.S. tariff threats against countries supporting Cuba)
Miguel Díaz-Canel
Miguel Díaz-Canel
President of Cuba (Accused U.S. of 'energy blockade'; promises crisis response details soon)
Raúl Castro
Raúl Castro
Former President of Cuba (Made rare public appearance at ceremony for fallen soldiers)

Organizations Involved

Government of Cuba
Government of Cuba
National Government
Status: Target of U.S. economic pressure campaign

The one-party socialist state that has governed Cuba since Fidel Castro's revolution faces what the CIA describes as economic conditions 'on the brink of collapse.'

Petróleos Mexicanos (Pemex)
Petróleos Mexicanos (Pemex)
State-owned Oil Company
Status: Disclosed $496M oil to Cuba in 2025; future shipments reduced due to domestic refining

Mexico's state oil company supplied approximately 20,000 barrels per day to Cuba through September 2025, making it the island's largest remaining oil source after Venezuelan shipments stopped.

Supreme Court of the United States
Supreme Court of the United States
Judicial Body
Status: IEEPA tariff ruling anticipated post-February 20 recess

The Court heard arguments in November 2025 on whether the International Emergency Economic Powers Act authorizes the president to impose tariffs—the same legal mechanism underlying Trump's Cuba order.

Chinese Foreign Ministry
Chinese Foreign Ministry
National Government Agency
Status: Pledged support for Cuba against U.S. economic pressure

China's diplomatic arm issued a formal statement on January 30 condemning Trump's Cuba tariff order and pledging support for Cuba's sovereignty.

Timeline

  1. U.S. Announces $6M Aid as Díaz-Canel Accuses 'Energy Blockade'

    Aid

    The U.S. announced $6 million in hurricane relief aid for Cuba amid severe energy shortages; President Díaz-Canel blamed U.S. 'naval blockade' on Venezuela for fuel crisis and promised government response details within a week.

  2. UN Warns of Humanitarian 'Collapse' in Cuba

    International

    The United Nations warned of potential humanitarian collapse in Cuba due to dwindling oil supplies following U.S. efforts to block imports.

  3. Pemex Reveals $496M Oil Supplies to Cuba in 2025

    Economic

    Pemex CEO disclosed $496 million in crude and products supplied to Cuba in 2025 (17,200 bpd oil + 2,000 bpd refined through Sept); future exports uncertain amid refining priorities.

  4. Rubio Reinstates Cuba Restricted List, Restores LIBERTAD Act Enforcement

    Policy

    Secretary of State Marco Rubio approved recreation of the Cuba Restricted List prohibiting transactions with Cuban military-linked entities and submitted a letter to Congress withdrawing Biden's suspension of Title III of the LIBERTAD Act, which allows lawsuits against entities trafficking in expropriated U.S. property.

  5. Cuba Declares International Emergency Over U.S. Order

    Diplomatic

    Cuban Foreign Minister Bruno Rodríguez Parrilla announced Cuba has declared an 'international emergency' in response to Trump's executive order, escalating the diplomatic confrontation.

  6. Díaz-Canel Condemns Trump's Plan to 'Suffocate' Cuba

    Statement

    President Díaz-Canel stated Trump plans 'to suffocate' Cuba's economy 'under a false and baseless pretext' by slapping tariffs 'on countries that sovereignly trade oil' with Cuba.

  7. Trump Signs Cuba National Emergency Order

    Policy

    Trump signed an executive order declaring a national emergency over Cuba and authorizing tariffs on any country that sells oil to the island. The order takes effect at 12:01 a.m.

  8. China Denounces U.S. Tariff Threat, Pledges Cuba Support

    Diplomatic

    Chinese Foreign Ministry spokesman Guo Jiakun stated China 'supports Cuba in safeguarding its national sovereignty and security' and opposes actions that 'deprive the Cuban people of their legitimate rights.'

  9. Sheinbaum Says Trump 'Blindsided' Mexico with Order

    Diplomatic

    President Sheinbaum revealed Trump blindsided Mexico with the executive order and vowed to seek alternatives to continue helping Cuba, suggesting one option could be for the U.S. itself to manage shipment of Mexican oil to the island.

  10. Mexico Pauses Oil Shipments to Cuba

    Policy

    President Sheinbaum confirmed Mexico had stopped oil deliveries to Cuba, calling it a 'sovereign decision' not made under U.S. pressure.

  11. Peak Power Deficit Reaches Nearly 2,000 MW

    Infrastructure

    Cuba's generation capacity deficit reached 1,995 megawatts at 6:40 pm, with millions of Cubans enduring blackouts of up to 20 hours a day.

  12. Tens of Thousands Protest Outside U.S. Embassy in Havana

    Civil

    Cubans gathered at the José Martí Anti-Imperialist Platform to demonstrate against U.S. actions in Venezuela, the killing of 32 Cuban officers in the January 3 raid, and to demand Maduro's release.

  13. Cuba Honors 32 Soldiers Killed in Venezuela Raid

    Diplomatic

    President Díaz-Canel and 94-year-old former leader Raúl Castro attended a ceremony in Havana paying tribute to 32 Cuban soldiers killed during the U.S. operation that captured Maduro.

  14. Diplomats Warn of Ports Grinding to Halt

    Infrastructure

    European diplomats in Havana described an energy crisis so severe that ports could stop functioning, potentially sparking dire food shortages for millions of Cubans.

  15. Trump Declares No Venezuelan Oil Will Reach Cuba

    Statement

    Trump posted on Truth Social: 'THERE WILL BE NO MORE OIL OR MONEY GOING TO CUBA – ZERO! I strongly suggest they make a deal, BEFORE IT IS TOO LATE.'

  16. CIA Assesses Cuba 'On the Brink'

    Intelligence

    The CIA released an assessment describing Cuba's economy as near collapse due to energy shortages, mass migration, and lost Venezuelan support—but did not predict imminent regime change.

  17. Rubio Warns Cuba After Maduro Capture

    Statement

    Secretary of State Marco Rubio told NBC's Meet the Press that Cuba's leaders are 'in a lot of trouble' and should be 'concerned.'

  18. U.S. Forces Capture Venezuelan President Maduro

    Military

    More than 200 U.S. special operations forces seized Nicolás Maduro from his Caracas home in a predawn raid, cutting off Cuba's primary oil patron.

  19. Fifth National Blackout in Under a Year

    Infrastructure

    Cuba suffered its fifth complete grid failure since October 2024, leaving the island without electricity for 28 hours.

  20. Cuba's First Total Nationwide Blackout

    Infrastructure

    Cuba's electrical grid collapsed entirely after the Antonio Guiteras power plant went offline, leaving 11 million people without power.

  21. Helms-Burton Act Signed

    Legislation

    President Clinton signed legislation codifying the Cuba embargo into law, making it nearly impossible for future presidents to lift sanctions without congressional approval.

  22. U.S. Embargo on Cuba Begins

    Policy

    President Kennedy imposed a comprehensive trade embargo on Cuba, expanding earlier restrictions to ban all imports from the island.

Scenarios

1

Cuba's Economy Collapses, Mass Exodus Accelerates

Discussed by: CIA assessment (January 2026), Foreign Affairs, Pavel Vidal (former Cuban central bank economist)

Without reliable fuel supplies, Cuba's already fragile infrastructure fails entirely. Rolling blackouts become permanent in most provinces, food distribution breaks down, and hospitals lose power. The exodus of Cubans—already exceeding one million since 2020—accelerates dramatically. The government maintains control through rationing and security services but cannot provide basic services. This scenario does not necessarily lead to regime change; analysts note authoritarian governments have survived similar crises (North Korea in the 1990s).

2

Mexico Resumes Shipments, Accepts Tariff Consequences

Discussed by: Latin American policy analysts, Mexican political commentators

President Sheinbaum, facing domestic pressure from her party's left wing, resumes oil shipments to Cuba despite U.S. tariff threats. The Trump administration imposes duties on Mexican imports. Mexico challenges the tariffs at the World Trade Organization and through USMCA dispute mechanisms. This triggers a broader trade confrontation that overshadows the Cuba question. Sheinbaum frames resistance as defending Mexican sovereignty against U.S. 'blackmail.'

3

Supreme Court Strikes Down IEEPA Tariff Authority

Discussed by: Brennan Center for Justice, Bloomberg legal analysts, Tax Policy Center

The Supreme Court rules in <em>Learning Resources v. Trump</em> that the International Emergency Economic Powers Act does not authorize tariffs, invalidating the legal mechanism underlying the Cuba executive order. The administration pivots to other statutory authorities or requests congressional action, but enforcement of the Cuba oil tariffs is delayed or abandoned. Lower courts have already ruled against IEEPA tariffs.

4

Cuba Negotiates Concessions, U.S. Eases Pressure

Discussed by: Trump administration officials (implied in statements about 'making a deal')

Facing economic catastrophe, Cuba's government signals willingness to negotiate. Potential concessions could include releasing political prisoners, reducing ties with Russia and China, or permitting international monitoring. The Trump administration, seeking a foreign policy win, agrees to permit limited oil imports in exchange. This scenario requires both sides to accept terms the other has historically rejected.

5

China Steps In as New Oil Supplier, Defies U.S. Tariffs

Discussed by: Chinese Foreign Ministry statements (January 30, 2026), Latin America foreign policy analysts

After publicly pledging support for Cuba's sovereignty, China begins shipping oil to the island through state-owned companies or intermediaries, calculating that the economic and diplomatic costs of U.S. tariffs are worth the geopolitical gains. This transforms the Cuba crisis into a direct U.S.-China confrontation, with Beijing testing Washington's willingness to impose punitive tariffs on its largest trading partner. Trump faces a choice: back down and appear weak, or trigger a major trade war over Cuba.

Historical Context

Cuba's Special Period (1991-2000)

1991-2000

What Happened

When the Soviet Union collapsed, Cuba lost $4.3 billion in annual subsidies and 85% of its trade partners overnight. Oil imports fell to 10% of pre-1990 levels. GDP dropped 35% by 1993. More than 50,000 Cubans developed vitamin deficiency-related blindness. An estimated 35,000 people attempted to flee on rafts.

Outcome

Short Term

The government eliminated 15 ministries, cut defense spending 86%, and legalized U.S. dollar circulation. Cubans lost an average of 12 pounds.

Long Term

Cuba survived by finding a new patron: Hugo Chávez's Venezuela began providing subsidized oil in the early 2000s, enabling economic recovery.

Why It's Relevant Today

Today's crisis mirrors the Special Period—sudden loss of a primary energy supplier combined with ongoing U.S. sanctions. The difference: Cuba may not find another patron willing to subsidize its economy.

U.S. Secondary Sanctions on Iranian Oil (2018-2020)

November 2018 - January 2021

What Happened

After withdrawing from the Iran nuclear deal, the Trump administration threatened sanctions on any country importing Iranian oil. Eight countries initially received waivers; in 2019, all waivers were revoked. Secondary sanctions on foreign businesses rose from 2 in 2018 to 104 by 2021.

Outcome

Short Term

Iran's oil exports fell by more than 50%. The Iranian rial collapsed. European allies' attempts to create alternative payment mechanisms (INSTEX) failed.

Long Term

Iran developed a 'shadow fleet' of tankers to evade sanctions, selling oil to China at discounted prices. The sanctions inflicted economic pain but did not change Iranian policy.

Why It's Relevant Today

The Cuba executive order uses the same template: secondary sanctions threatening third countries. The Iran experience shows such pressure can reduce but not eliminate oil flows, especially if major buyers (China) refuse to comply.

U.S. Oil Embargo on Japan (1941)

August 1941

What Happened

After Japan expanded into French Indochina, the U.S. froze Japanese assets and cut off oil exports—Japan's military imported 80% of its oil from America. Britain and the Dutch East Indies followed with their own embargoes.

Outcome

Short Term

Japan calculated it had 18 months of oil reserves. Rather than accept strategic suffocation, military leaders chose war.

Long Term

Japan attacked Pearl Harbor four months later. The embargo achieved its goal of confronting Japanese expansion—but triggered a conflict the U.S. had hoped to avoid.

Why It's Relevant Today

Energy embargoes can produce unintended escalation. Cuba lacks Japan's military capacity, but the historical lesson is that cornered nations sometimes choose desperate options rather than capitulation.

27 Sources: