US imposes sanctions on Cuba's state oil company Cupet, accusing it of weaponizing energy

The US government on Thursday imposed sanctions on Cuba's state-owned oil and gas company, Cupet, escalating tensions between the two nations. Secretary of State Marco Rubio stated that key assets of Cupet were "unlawfully expropriated from American owners years ago" and accused Cuba's government of weaponizing energy.

Rubio claimed that while Cubans suffer fuel shortages and blackouts due to under-investment, the country's leaders divert energy resources for personal enrichment. Without providing evidence, he alleged that officials resell scarce energy on the secondary market, hoard supplies for the military and security forces, and ration energy as a tool of social control. Cupet's fuel sales to the public are nearly nonexistent and currently rationed.

Cuba did not immediately respond to a request for comment but has previously argued that sanctions harm all Cubans and aim to destabilize the government. Cuban economist Ricardo Herrero, executive director of the US-based Cuba Study Group, criticized the move, saying it undermines what had been a humanitarian priority.

Context and previous actions

The sanctions come nearly a week after the US sanctioned Cuban President Miguel Díaz-Canel and other officials. Rubio said all Cupet property in the US or under US control is blocked. He stated that President Trump wants a new future for Cubans with greater economic and political freedom.

Cuba already struggles under a decades-old embargo and petroleum shortages. Power outages, common due to a five-year economic crisis, have intensified since Trump threatened tariffs in late January on any country selling oil to Cuba. Both nations have acknowledged holding talks, though their scope is unknown. Trump has also threatened military action in Cuba following the US invasion of Venezuela and arrest of Nicolás Maduro. Last Thursday, he said Cuba has "sort of collapsed" and would be handled after military operations in Iran.