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Home Business & Economy
Cuba oil crisis

A bicitaxi rides in a street of Havana, on February 13, 2026. The fuel crisis in Cuba, and particularly in Havana, is forcing many workers who depend on daily mobility to abandon gasoline cars and turn to electric tricycles and bicycle taxis as more accessible alternatives.

Cuba Oil Crisis: How Latin America Is Responding to US Oil Blockade

NEWS.IQ by NEWS.IQ
February 18, 2026
in Business & Economy
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The Cuba oil crisis has intensified following a new US oil blockade that cut off critical Venezuelan supplies to Havana. The move, announced after the reported capture of Venezuelan leader Nicolas Maduro by US special forces in early January, has deepened fuel shortages across the island and triggered varied reactions across Latin America.

For years, Cuba has struggled with limited fuel imports under the longstanding US embargo imposed in 1962. However, the recent disruption of Venezuelan oil shipments has worsened electricity blackouts, transportation disruptions and economic strain, according to AFP.

Governments in the region have responded differently, with some offering humanitarian assistance or political backing, while others have distanced themselves from Havana or ended cooperation agreements.

Humanitarian Aid Amid the Cuba Oil Crisis

Some left-leaning governments have extended limited material support despite pressure from Washington.

Mexico, historically one of Cuba’s closest partners, suspended oil shipments in early January. President Claudia Sheinbaum said part of those supplies had been provided under a humanitarian arrangement. While halting crude deliveries, she rejected US tariff threats on countries trading hydrocarbons with Havana.

Two Mexican navy vessels arrived in Havana carrying 814 tons of food, and Sheinbaum announced that more than 1,500 tons of additional humanitarian assistance would follow. Mexico also opened a collection center in Mexico City to gather aid for Cuba.

In Chile, outgoing President Gabriel Boric pledged a $1 million contribution to Cuba. The decision drew criticism from president elect Jose Antonio Kast, a conservative politician aligned with US President Donald Trump’s regional policies.

Other governments have taken a more cautious approach:

Colombia and Uruguay have not announced direct aid, although Uruguay said it is studying the situation.
• Ecuador has not introduced humanitarian programs for Cuba.
• Argentina advised its citizens to avoid travel to the island due to the worsening energy situation.

Political Support Without Material Assistance

Several governments have voiced opposition to US measures but stopped short of sending supplies.

Brazilian President Luiz Inacio Lula da Silva criticized US pressure on Cuba. However, his administration has not announced new aid shipments.

Brazil remains linked to Havana through the Mais Medicos program, which brings Cuban doctors to work in underserved areas. Cuba’s overseas medical missions are a major source of foreign currency, generating approximately $7 billion in 2025, according to official Cuban figures.

Venezuela’s interim government, led by Delcy Rodriguez, reiterated what it described as solidarity with Cuba. Venezuela currently hosts around 13,000 Cuban healthcare professionals. Before Maduro’s reported capture in January, Venezuela had been Cuba’s principal oil supplier.

Nicaragua rejected US sanctions but has not confirmed new aid shipments. The government of Daniel Ortega also ended a visa waiver policy for Cubans that had been in place since 2021, a measure that had facilitated migration from the island.

Countries Ending Medical and Economic Agreements

In contrast, several US aligned governments have scaled back cooperation with Havana.

Guatemala terminated a 27 year agreement under which Cuban doctors served in rural areas. The 412 Cuban healthcare professionals currently in the country are expected to depart in the coming months.

Honduras has announced plans to end its Cuban medical brigades, while Antigua and Barbuda ended a similar agreement in December.

Guyana, which has long hosted Cuban doctors, said it would modify its payment system to compensate medical staff directly rather than channeling funds through Havana.

These decisions affect one of Cuba’s most important revenue streams. Medical missions abroad remain a cornerstone of the Cuban economy.

Economic Impact Inside Cuba

Transport and Daily Life

The Cuba oil crisis has severely affected daily life. Fuel shortages have forced the government to impose rationing measures and cut public transportation services.

In Havana, taxis have become scarce. Drivers who obtain fuel on the black market reportedly pay up to $5 per liter, leading fares to triple. As a result, electric tricycles and rickshaws have become a primary means of transport in parts of the capital.

However, frequent power outages lasting up to 12 hours complicate efforts to charge electric vehicles. Residents often rely on generators or solar panels where available.

Tourism, Tobacco and Remittances

The energy shortage has also impacted tourism, Cuba’s second largest source of foreign income after medical services. Authorities suspended jet fuel supplies earlier this month, prompting several airlines including carriers from Canada, Russia and Latin America to repatriate passengers before halting flights.

Countries such as Canada, Russia, Spain and Germany have advised citizens to avoid travel to Cuba.

The tobacco sector, another key export industry, is struggling due to limited fuel for irrigation and harvesting. In 2024, Cuban cigar sales reached $827 million. The annual cigar festival, which generated nearly $19 million in 2025 through auctions, was canceled this year due to the energy crisis.

Remittance flows have also been under pressure. Formal money transfer channels have been largely restricted since 2020, with families relying heavily on informal cash deliveries from travelers.

Conclusion: A Region Divided

The Cuba oil crisis has exposed political divisions across Latin America. While some governments continue to provide humanitarian assistance or diplomatic backing, others have aligned more closely with Washington and reduced cooperation with Havana.

As fuel shortages deepen and key sectors face disruption, the regional response remains fragmented, reflecting broader geopolitical tensions in the Americas.

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