US Imposes Sanctions on Cuba's Oil Firm Amid Rising Tensions

WHO:

Al Jazeera - U.S. Secretary of State Marco Rubio denounced Union Cuba-Petroleo (Cupet) and the Castro family.

ABC News - Cuban President Miguel Díaz-Canel and other officials were sanctioned by the U.S. government.

WHAT:

Al Jazeera - The Trump administration has hinted at military action in Cuba, with Trump stating, “Cuba’s in its last moments of life as it was. It’ll have a great new life, but it’s in its last moments of life the way it is.”

ABC News - Rubio accused Cuban officials of “reselling countless barrels of scarce energy on the secondary market, hoarding energy supplies for its military, intelligence and repressive forces, and rationing energy as a tool of social control.”

Al Jazeera - The sanctions are expected to heighten Cuba’s energy crisis, with the U.S. freezing any U.S.-based assets of Union Cuba-Petroleo and barring any entity with operations in the U.S. from doing business with the company.

Al Jazeera - The frequency of power outages in Cuba has increased, including two island-wide blackouts in March alone.

Al Jazeera - The United Nations high commissioner for human rights, Volker Turk, warned that fuel restrictions imposed since early 2026 are directly harming Cubans, stating, “Children are dying because doctors lack access to essential medical supplies and medicines. This is unacceptable.”

Al Jazeera - The U.S. sanctions are expected to heighten Cuba’s energy crisis and freeze any U.S.-based assets of Union Cuba-Petroleo.

Al Jazeera - The International Energy Agency estimates that Cuba is only able to produce 40 percent of the oil it uses.

Al Jazeera - Only a single Russian oil tanker has reached Cuba since late January.

ABC News - Power outages have intensified since U.S. President Trump threatened tariffs in late January on any country that sells or provides oil to Cuba.

The New York Times - Vanguard Energy had struck an agreement to send 250,000 barrels of gasoline and diesel from a Texas refinery to Cuba, but the deal was put on hold by the Trump administration.

Al Jazeera - The U.S. imposed sanctions on Cuba’s state-owned oil and gas company, Union Cuba-Petroleo.

ABC News - The U.S. government announced sanctions against Cupet, blocking all property or interests of the company located in the U.S. or controlled by U.S. persons.

Al Jazeera - The sanctions are expected to heighten Cuba’s energy crisis and freeze any U.S.-based assets of Union Cuba-Petroleo.

ABC News - Cupet's fuel sales to the public are almost nonexistent and currently rationed.

WHERE:

Al Jazeera - The sanctions target Cuba, specifically the state-owned oil and gas company Union Cuba-Petroleo.

ABC News - The sanctions affect properties and interests located in the U.S. and controlled by U.S. persons.

WHEN:

Al Jazeera - The sanctions were announced on a Thursday.

ABC News - The announcement of sanctions against Cupet came almost a week after the U.S. sanctioned President Miguel Díaz-Canel and other officials.

WHY:

Al Jazeera - Rubio stated that Union Cuba-Petroleo’s assets “were unlawfully expropriated from American owners years ago,” referencing the Cuban government’s nationalization efforts in 1960.

Al Jazeera - Rubio stated that Union Cuba-Petroleo was a tool for Cuba’s “repressive security apparatus” and accused the Cuban government of diverting energy resources for personal gain.

ABC News - Rubio accused Cuba’s government of weaponizing energy and hoarding energy supplies for military and repressive forces.

HOW:

Al Jazeera - The Trump administration has filed a criminal indictment in the U.S. against Raul Castro over the 1996 downing of an activist plane.

Al Jazeera - The Trump administration has hinted at the possibility of military action in Cuba, with Defense Secretary Pete Hegseth warning Cuba not to make “the kind of wrong decision” that could create a threat to the United States.

Al Jazeera - The Trump administration has filed a criminal indictment in the U.S. against former Cuban President Raul Castro over the 1996 downing of an activist plane.

The New York Times - The State Department clarified that Vanguard Energy required explicit approval from U.S. authorities to proceed with the fuel transaction.

Al Jazeera - The sanctions are part of a pressure campaign led by Trump to restrict fuel on the island, including cutting off energy exports from Venezuela and threatening tariffs against countries that ship oil to Cuba.

ABC News - The U.S. continues to target the Communist regime’s ability to leverage its energy trade to further its agenda.

(UPDATED June 12, 2026 21:31 UTC)

The Trump administration is hinting at potential military action in Cuba, with Trump declaring that the country is in its "last moments of life" as it currently exists. Meanwhile, Senator Marco Rubio has accused Cuban officials of manipulating energy supplies for military and repressive purposes, which could exacerbate the ongoing energy crisis as the U.S. imposes sanctions that freeze assets of Union Cuba-Petroleo. Additionally, a criminal indictment has been filed against Raul Castro in connection with the 1996 downing of an activist plane, marking a significant escalation in tensions.

(UPDATED June 12, 2026 12:07 UTC)

The U.S. has imposed sanctions that are expected to worsen Cuba's energy crisis by freezing assets of Union Cuba-Petroleo and preventing U.S.-based entities from conducting business with the company. As power outages have surged, including two island-wide blackouts in March, the United Nations high commissioner for human rights has expressed grave concerns, stating that fuel restrictions are leading to dire consequences for the Cuban population, particularly affecting children's access to essential medical supplies. In a related development, the Trump administration has hinted at potential military action in Cuba, while also filing a criminal indictment against former Cuban President Raul Castro for the 1996 downing of an activist plane.

(UPDATED June 12, 2026 04:24 UTC)

U.S. sanctions are set to exacerbate Cuba's energy crisis and freeze any U.S.-based assets of Union Cuba-Petroleo, which has been struggling to produce only 40 percent of its oil needs. Power outages have worsened since President Trump threatened tariffs on countries supplying oil to Cuba, and a deal for Vanguard Energy to send 250,000 barrels of fuel from Texas has been put on hold by the administration. The State Department has indicated that Vanguard Energy must obtain explicit approval from U.S. authorities to move forward with the fuel transaction.

(UPDATED June 11, 2026 23:30 UTC)

U.S. Secretary of State Marco Rubio has denounced Union Cuba-Petroleo, the state-owned oil and gas company, as a tool for Cuba’s repressive security apparatus, while the U.S. government has imposed sanctions on both Cupet and Cuban President Miguel Díaz-Canel. These sanctions block all property or interests of the company located in the U.S. or controlled by U.S. persons, and are expected to exacerbate Cuba’s energy crisis by freezing any U.S.-based assets of Cupet, which is already struggling with almost nonexistent fuel sales. This move is part of a broader pressure campaign led by Trump to restrict fuel on the island, including cutting off energy exports from Venezuela and threatening tariffs against countries that ship oil to Cuba.