US sanctions Cuba's state oil company CUPET amid escalating energy crisis

The United States has imposed sanctions on Cuba's state-owned oil company, Unión Cuba-Petróleo (CUPET), intensifying the economic pressure on the island as it suffers its worst energy crisis in decades. The move comes as a planned 250,000-barrel fuel shipment by Florida-based Vanguard Energy—the largest from the US since 1960—was canceled.

What happened

On June 11, 2026, the US Treasury's OFAC added CUPET to its sanctions list, blocking its assets and prohibiting US transactions. Secretary of State Marco Rubio accused the Cuban government of using energy as a "weapon of repression" and alleged the regime had "expropriated" assets from US owners years ago Source: Clarín. The same day, Vanguard Energy announced it was suspending its plan to ship 250,000 barrels of fuel to Cuba, citing "operational limitations" after the sanctions Source: La República. However, Miami-Dade County had already revoked Vanguard's local business tax receipt, with Tax Collector Dariel Fernández stating the county would not serve as a base for activities that "undermine federal law" Source: El Nacional.

The reaction

Cuban Foreign Minister Bruno Rodríguez condemned the sanctions, saying Rubio is reinforcing the "economic and energy siege" against the island Source: Infobae. The Cuban government has called the US blockade a "collective punishment" amounting to "genocide" Source: Infobae.

Impact on Cuba

Cuba is facing widespread blackouts. On June 12, the state utility UNE estimated that 57% of the country would be without power simultaneously during peak hours Source: Infobae. The country produces only 40% of its oil needs; the rest came from imports now largely cut off by the US naval blockade imposed in January Source: El País. With CUPET sanctioned, the energy crisis is expected to worsen.