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Home Business & Economy
Cuba oil embargo

Graphic content / A man heats water over a wood fire on a street in Havana on February 23, 2026. Cuban Foreign Minister Bruno Rodriguez on February 23 accused the United States of trying to trigger a "humanitarian catastrophe" in his country with an oil blockade he called an "aggressive escalation".

US eases Cuba oil embargo while pressing Havana for major reforms

NEWS.IQ by NEWS.IQ
February 26, 2026
in Business & Economy
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The Cuba oil embargo took center stage at a regional summit in the Caribbean as the United States announced a limited easing of restrictions on Venezuelan oil shipments to Cuba’s private sector. The move comes amid a deepening fuel and electricity crisis on the island.
Washington stressed that any relaxation of measures would depend on Havana’s adherence to strict conditions as regional leaders warned that the humanitarian crisis in Cuba risks destabilizing neighboring states.
The decision follows growing concerns over severe shortages, rising migration, and broader economic collapse in a country already weakened by decades of embargo policies and structural challenges.

US links oil easing to “dramatic change” in Cuba

US Secretary of State Marco Rubio said Cuba must undergo significant political and economic reforms, attributing the current crisis to the island’s communist government.
Rubio, a Cuban-American politician and longstanding critic of Havana, argued that mismanagement and the lack of a competitive private sector have left Cuba especially vulnerable following Washington’s halt of Venezuelan oil shipments in January after removing former Venezuelan leader Nicolas Maduro.
Rubio stated that the US would permit Venezuelan oil exports to Cuba only if directed to the private sector, warning that any diversion toward state or military institutions would trigger an immediate reinstatement of sanctions.
He emphasized that Cuba has “lost 15 percent of its population since 2021” due to migration driven by worsening living conditions.

Conditions for maintaining eased sanctions

Rubio outlined scenarios that would lead to sanctions being reinstated:
• Oil diverted from private entities to state or military structures
• Evidence of attempts to bypass monitoring or licensing conditions
• Misuse of humanitarian concessions granted for commercial or social purposes
He said the United States would respond swiftly if the “spirit” of the easing was violated.

Regional leaders warn of instability

Caribbean Community (CARICOM) leaders expressed concern that Cuba’s deteriorating economic situation could trigger wider instability.
Jamaican Prime Minister Andrew Holness said a prolonged crisis in Cuba “will not remain confined to Cuba,” citing fears of increased migration and humanitarian spillover.
Saint Kitts and Nevis Prime Minister Terrance Drew, who studied medicine in Cuba, described alarming reports of food scarcity and uncollected waste, warning that “a destabilized Cuba will destabilize all of us.”
Canada, which maintains longstanding diplomatic ties with Havana, announced CAN$8 million in humanitarian aid to be distributed through the World Food Program and UNICEF.

Unusual security incident

Rubio commented briefly on a recent Cuban announcement that four people were killed during an attempted infiltration from a Florida-registered speedboat. He said Washington was still studying the “unusual” event and noted that only limited information had been verified so far.

A deepening fuel and electricity crisis

The fuel shortages have reshaped daily life in Havana and across the island. Taxi drivers are abandoning their vehicles, small businesses are struggling to remain open, and consumers face rolling blackouts that complicate everything from cooking to refrigeration.
Private studies in Cuba suggest that more than 96 percent of small and medium businesses are suffering severe or catastrophic operational losses due to the lack of diesel and gasoline.
The government has implemented emergency measures including a four-day work week for the public sector and strict fuel rationing. Diesel sales are banned, gasoline allotments are limited, and many Cubans now commute by bicycle or leave their jobs entirely.
At Havana’s Mariel port, shipping containers are piling up with no fuel available for distribution trucks. Vendors report that food supplies are thinned out by midday due to transportation bottlenecks.

Impact on households

• Households face daily power cuts that interrupt cooking and cooling
• Solar energy use has increased among those who can afford it
• Many families resort to charcoal or wood fires to prepare meals
• Businesses close early due to lack of supplies and fuel for generators
Residents report that electricity shortages dictate their daily routines and that imported food is becoming even harder to obtain.

Venezuela and Haiti: US regional agenda

Rubio also defended the US operation that removed Maduro from power in Venezuela, saying the country is “better off today” and moving toward “fair, democratic elections.”
He also met with Haiti’s Prime Minister Alix Didier Fils-Aime to discuss progress in deploying a UN-backed force to confront armed gangs. Rubio said he hoped Haiti would hold its first elections in ten years before the end of 2026.
Rubio’s visit marks the highest-level US official trip to Saint Kitts and Nevis.

Conclusion:

The partial easing of the Cuba oil embargo highlights Washington’s attempt to balance humanitarian considerations with political pressure on Havana. However, with fuel shortages worsening and regional leaders warning of broader fallout, the crisis in Cuba remains a pressing challenge for the Caribbean.

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