Cuba’s economy is on the verge of collapse as two of the country’s top oil supplies dry up amid US pressure.People refuel their car and motorcycle at a gas station near the Malecon in Havana,
Cuba, Tuesday on January 27, 2026. [Ramon Espinosa/AP Photo]Published On 28 Jan 2026Mexico has temporarily halted oil shipments to
Cuba amid heightened rhetoric from
United States President
Donald Trump, who has been seeking to isolate the communist-ruled island nation.President
Claudia Sheinbaum, however, said the pause was a “sovereign decision” not made under pressure from the US.Recommended Stories list of 4 itemslist 1 of 4Cuban president says no talks with the
United States at presentlist 2 of 4US air authority warns of ‘military activities’ over
Mexico, South Americalist 3 of 4Cuban official accuses US of ‘piracy’ against sanctioned Caribbean islandlist 4 of 4Mexico vows ‘solidarity’ with
Cuba after oil shipment cancellation reportsend of listMexico, along with
Venezuela, has been providing the bulk of
Cuba’s oil supplies, but Venezuelan crude was cut off from Havana after its president, Nicolas Maduro, was abducted in a military operation and taken to the US on January 3.
Mexico supplied 44 percent of Cuban oil imports and
Venezuela exported 33 percent until last month, while some 10 percent of Cuban oil is sourced from
Russia. Some oil is also sourced from
Algeria, according to The Financial Times figures.The erstwhile Soviet Union was the biggest backer of
Cuba for decades, but since its fall in 1991, support has dwindled drastically.So, what’s behind the Mexican government’s decision and will it exacerbate
Cuba’s deepening energy and economic crisis?What did Mexican President
Claudia Sheinbaum say?Asked at her regular morning press conference whether she denied a media report that
Mexico had halted the shipment, Sheinbaum responded: “It is a sovereign decision and it is made in the moment when necessary.”Sheinbaum sidestepped a question about whether
Mexico would resume oil shipments to
Cuba, answering: “In any case, it will be reported.”She also said
Mexico would “continue to show solidarity” with
Cuba.In its most recent report,
Mexico’s state-owned oil corporation
Pemex said it shipped nearly 20,000 barrels of oil per day to
Cuba from January through September 30, 2025.With
Venezuela offline, shipments from
Pemex have become a critical, though insufficient, lifeline for the island.Analysts now expect further pressure from Washington to halt those shipments more permanently, given Trump’s growing demands that
Mexico deliver stronger results in the fight against drug cartels.
Mexico has been trying to balance its traditional ties with
Cuba amid mounting pressure from the Trump administration.The Reuters news agency last week reported that the Mexican government was reviewing whether to keep sending oil to
Cuba amid growing concerns within Sheinbaum’s government that continuing the shipments could put the country at odds with the US.
Mexico is currently negotiating a trade agreement with the US amid tariff threats.Cars wait in line to refuel at a gas station in Havana on January 20, 2026. [Adalberto Roque/AFP]Why isn’t
Cuba getting Venezuelan oil any more?Trump has said that no Venezuelan oil or money will go to
Cuba after abducting President Maduro and taking control of
Venezuela’s oil industry.“THERE WILL BE NO MORE OIL OR MONEY GOING TO
Cuba – ZERO! I strongly suggest they make a deal, BEFORE IT IS TOO LATE,” Trump wrote on his Truth Social platform on January 11.“
Cuba lived, for many years, on large amounts of OIL and MONEY from
Venezuela,” Trump added.Trump did not elaborate on his suggested deal, but US officials have hardened their rhetoric against
Cuba in recent weeks.However, Cuban President Miguel Diaz-Canel has rejected talks. “We have always been willing to maintain serious and responsible dialogue with the various US administrations, including the current one, on the basis of sovereign equality, mutual respect and the principles of international law,” Diaz-Canel said.What to know about Trump’s growing rhetoric against CubaFollowing the US attack on
Venezuela, the Trump administration has escalated its rhetoric against
Cuba, which has been under strict US economic sanctions for decades.Last week, the US-based Wall Street Journal reported that Trump aims to remove
Cuba’s leadership and is actively seeking government insiders in Havana who are willing to make a deal with Washington to “push out the Communist regime”.Trump on Tuesday said that
Cuba is on the brink of collapse. “
Cuba is really a nation that’s very close to failing,” he said during a visit to the US state of Iowa.The US president said that
Cuba no longer receives oil and money from
Venezuela, a close ally of Havana since the days of former socialist President Hugo Chavez.Last week, a Cuban diplomat based in Bogota accused the US of “international piracy” over Washington’s blockade of Venezuelan oil.“The US is carrying out international piracy in the Caribbean Sea that is restricting and blocking the arrival of oil to
Cuba,” Carlos de Cespedes,
Cuba’s ambassador to Colombia, told Al Jazeera on Saturday, adding that Havana is facing more powerful US threats than it has in the 67 years since the revolution.Earlier, US Secretary of State Marco Rubio, who is of Cuban descent and is believed to orchestrate policies towards
Venezuela and
Cuba, has described the government in Havana as a “huge problem”.About a week after Maduro’s abduction, Trump urged
Cuba to make a deal “before it is too late,” without specifying what kind of agreement he was referring to.In a post on Truth Social, Trump suggested Rubio could become the president of
Cuba. “Sounds good to me!” he said.Relations between Havana and Washington have been tense for decades. The ties were normalised in 2014 under former President Barack Obama, in a major foreign policy shift. But Trump, who succeeded Obama, reversed the decision and reimposed sanctions during his first term.In 2019, Trump banned cruise ships from visiting
Cuba, one of the most popular forms of travel to the island, which earns much-needed revenue from tourism.
Mexico faces its own pressure from Washington, as Trump has threatened to take military action against Mexican drug cartels. Last week, the country transferred dozens of suspected cartel members to the US amid pressure from the Trump administration.Since Trump’s return to power in January last year, the war on drugs has been at the top of his administration’s agenda. The US said its action against Maduro was justified, based on claims that
Venezuela sent drugs to the US. But Caracas is not the main source of drugs coming into US territory.How has the US policy affected
Cuba?
Cuba is enduring its worst economic crisis since Fidel Castro’s 1959 revolution, as fuel shortages have caused prolonged power cuts, water and food supply disruptions.Analysts say the Cuban economy could collapse completely as Mexican and Venezuelan oil supplies dry up.A total blockade on oil imports to
Cuba is part of possible new tactics by the Trump administration to drive leadership change in the Caribbean country, according to the US-based Politico site.Al Jazeera could not confirm Politico’s report.Rising geopolitical tensions with the US have also driven tourists away from
Cuba, with the number of visitors dropping by nearly 70 percent since 2018.For decades, tourism – a source of livelihood for millions of Cubans – generated up to $3bn a year for
Cuba. Some 1.6 million tourists visited
Cuba last year, significantly lower than the 4.8 million in 2018 and the 4.2 million in 2019, before the COVID-19 pandemic hit.Havana classic car driver Aldama recalled that he would sometimes work until 9pm. Nowadays, he’s lucky if he takes one or two tourists for a spin in a day.He used to charge $50 for a drive around the capital. Now, given the lack of demand, he has lowered his price to $25 and even $20 if a tourist insists on bartering.“The day that we run out of fuel, we’ll stop driving and look for another job,” Aldama told The Associated Press. “There’s no other choice.”