US Sanctions Cuba's State Oil Company Amid Rising Tensions

SAN JUAN, Puerto Rico -- The U.S. government on Thursday announced sanctions against Cuba’s state-owned oil and gas company in a move expected to increase tensions between the two countries.

U.S. Secretary of State Marco Rubio asserted that key assets of the company, known as Cupet, were “unlawfully expropriated from American owners years ago.”

He also accused Cuba’s government of weaponizing energy.

“While the Cuban people have suffered fuel shortages and blackouts because of decades of under-investment in critical infrastructure, Cuba’s Communist leaders have diverted energy resources to line their own pockets,” Rubio said in a statement.

He further noted, without providing evidence, that Cuban officials “resell 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.”

The Cuban government did not immediately respond to a message seeking comment. It has previously said that sanctions punish all Cubans and are aimed at strangling the economy to destabilize both the government and its people.

Cupet’s fuel sales to the public are almost nonexistent and are currently rationed.

Thursday's announcement comes almost a week after the U.S. government sanctioned Cuban President Miguel Díaz-Canel and other officials, as well as several institutions.

Rubio said in a statement that all property or interests of Cupet located in the U.S. or in possession or control of U.S. people are blocked.

“ President Trump wants a new future for the Cuban people with greater economic and political freedom and opportunity,” Rubio wrote on X. “Until then, we will continue to target the Communist regime’s ability to leverage its energy trade to further its corrupt agenda and violently repress the Cuban people.”

Cuba is already struggling under a decades-old embargo and a lack of petroleum as the U.S. keeps pushing for a change in its economic and political model.

Power outages — already common given the economic and energetic crisis gripping the island for the past five years — have only intensified since U.S. President Donald Trump threatened tariffs in late January on any country that sells or provides oil to Cuba.

Both countries have acknowledged that they’ve held talks, but the scope of them is unknown.

Meanwhile, Trump has been threatening military action in Cuba ever since the U.S. military invaded Venezuela and arrested former President Nicolás Maduro.

Last Thursday, Trump said Cuba has “sort of collapsed” and said “we’re going to handle that as soon as we’ve finished” military operations in Iran.