The Trump administration imposed sweeping sanctions on Cuba’s national oil company, Union Cuba-Petroleo, on Wednesday — the latest move in a sweeping campaign of economic pressure that has pushed U.S.-Latin American relations to their most volatile point in years, as Mexico and Brazil simultaneously pressed the United Nations to intervene before the standoff with Venezuela spirals into open conflict.
The State Department designated Union Cuba-Petroleo as a sanctioned entity, accusing the company of serving as a financial lifeline for the Cuban government and helping it circumvent existing U.S. restrictions. Secretary of State Marco Rubio called the company “a front for the Castro regime’s kleptocracy” and said it had “unlawfully expropriated U.S. assets and enabled repression of the Cuban people.”
The sanctions effectively freeze any assets the company holds in U.S. jurisdiction and prohibit American individuals and entities from doing business with it — a significant escalation given Cuba’s dependence on imported fuel. Industry analysts said the measure could further cripple Cuba’s already-struggling energy sector, which has been battered by blackouts and fuel shortages for months.
Mexico and Brazil Sound the Alarm
The announcement came just hours after Mexican President Claudia Sheinbaum and Brazilian President Luiz Inacio Lula da Silva independently called on the UN to step in as a U.S. naval buildup intensifies off Venezuela’s Caribbean coast.
Speaking at a morning press conference in Mexico City, Sheinbaum said Mexico opposes any foreign intervention in Venezuela. “I call on the United Nations to fulfil its role. It has not been present. It must assume its role to prevent any bloodshed,” she said, offering Mexico as a potential host for negotiations between Washington and Caracas.
“The entire world must ensure that there is no intervention and that there is a peaceful solution,” she added.
Lula, speaking at a ministerial meeting in Brasilia, echoed the call for restraint. “I am concerned about President Trump’s attitudes towards Latin America, about the threats,” he said, adding that he had spoken directly with Trump this month urging dialogue. “The power of the word can outweigh the power of the gun,” Lula said. “If you are interested in talking to Venezuela properly, we can contribute. Now, you have to be willing to talk, you have to be patient.”
U.S. Naval Buildup and the Venezuela Blockade
The U.S. has deployed thousands of troops and nearly a dozen warships — including an aircraft carrier — to the Caribbean region surrounding Venezuela. Last week, U.S. forces seized a supertanker near Venezuelan waters. On Tuesday, Trump ordered a blockade of all oil tankers operating under sanctions entering or leaving Venezuela, a move the Maduro government called “a grotesque threat.”
UN Secretary-General Antonio Guterres issued a statement calling for “immediate de-escalation” and urging both sides to honour their obligations under international law. He repeated the call in a phone call with Maduro on Wednesday, the Venezuelan government said.
China Backs Venezuela
China’s foreign minister, Wang Yi, told his Venezuelan counterpart Yvan Gil in a Wednesday call that Beijing opposes “unilateral bullying” and supports Caracas in defending its sovereignty. “China believes the international community understands and supports Venezuela’s position in defending its legitimate rights and interests,” Wang said, according to a Chinese Foreign Ministry statement.
The growing geopolitical fault line — with the U.S. and China on opposing sides — threatens to deepen a crisis that has seen Venezuela’s oil sector become a flashpoint in the broader competition for influence in Latin America.
Diego Vargas
Diego Vargas covers Latin American politics, economics, and regional affairs from Bogota.