The US has liberalized its policy toward Venezuela to sell oil to Cuba, and this is an unusual swing, given the attempt to resolve a further fuel crisis in the Caribbean island. The ruling is made in the context of increased tension following an American intervention ousting the president of Venezuela and halting decades-long oil shipments with Cuba, which seemed to alarm the rest of the Caribbean countries regarding their stability in the region.
Venezuelan Oil Sales to Cuba: US Policy Change Explained
Cuba has been adversely impacted by the energy supply since the beginning of January 2026 when the U.S. troops seized the Venezuelan President Nicolás Maduro. Historically Venezuela exported the majority of Cuban oil under a decades old agreement and the abrupt termination exacerbated fuel crises that have grossly impacted day to day activities such as electricity, transportation and other basic amenities.
Impact of Oil Sales on Cuba’s Energy Crisis
As part of the humanitarian burden, the Office of Foreign Assets Control (OFAC) of the U.S. The Treasury has issued a positive licensing policy that, in response to the humanitarian pressure, enables the third-party companies to re-sell Venezuelan crude and refined products to the island. The policy strictly allows such transactions to assist the people of Cuba and the Cuban private sector, but prohibits such transactionion that directly promote the Cuban military or governmental recovery and assets.
Going forward, non-U.S. firms in addition to the U.S. firms can apply the OFAC licenses to export the Venezuelan oil to Cuba as long as they are provided with stringent requirements. Such sales are required to pass through U.S controlled bank accounts which is an indication of further U.S control. The attempts to provide the jet fuel or other particular products are still under closer regulatory consideration.
The policy modification is calculated to harmonize humanitarian demands and Havana pressure of the strategy. The crippling fuel shortage in Cuba has also caused extensive power outages, stalled food distribution, and disruption of healthcare services. According to experts, this might be the much-needed relief by avoiding the boosting of the purse pockets of the government by permitting the fuel to be accessed by people in the private sector.
Regional Reactions and Caribbean Stability
The leaders of the Caribbean have called to the diplomacy of the U.S. and aid to the Cuban nation threatening that the instability on the island poses the region wide risks. During one of their closed-door CARICOM gatherings in Saint Kitts and Nevis, the U.S. Secretary of State Marco Rubio convened with regional leaders to talk about collaborative efforts in issues related to security, such as crackdown on transnational crime and the humanitarian aftermath of the crisis in Cuba. Prime Ministers of countries like Jamaica like Andrew Holness emphasized the need to create dialogue between Washington and Havana to prevent greater economic and social upheavals.
Although he is lifting the embargo on oil at this time Washington still puts pressure on the Cuban suppliers. Mexico, another Cuban alternative oil supplier stopped its deliveries following U.S federal threats of imposing a tariff on the suppliers. Mexico has dispatched humanitarian shipments to the island, two aid ships in earlier February, and again demanded diplomatic contact.
US Regulatory Oversight and Restrictions on Sales
According to critics, Cuban industry may also collapse completely without the large streams of fuel because most of the weak pillars of the Cuban economy are the small enterprises of its economy, which will be unable to operate without electricity as its core energy. The U.S. changes can provide only partial relief recently, yet logistic issues and regulatory obstacles are a big problem.
The way Washington made his decision is a subtle re-calibration of the sanction policy. By permitting resales to the privately owned sector in Cuba with restrictions on the government and military, the U.S plays a significant role in ensuring it reduces the adverse effects on the humanitarian front without sacrificing its overall strategic goals. Nevertheless, the local interests are cautioned that it will take months of continuous collaboration and diplomatic trade to stabilize Cuba and the Caribbean region at large.