Cuba's severe oil, water crisis
Analysis based on 8 articles · First reported May 28, 2026 · Last updated May 29, 2026
The severe energy and water crisis in Cuba, driven by US sanctions, negatively impacts the Cuban economy and its population. This event highlights the risks associated with geopolitical tensions and their direct effect on essential services and infrastructure, potentially affecting companies with exposure to the region or those involved in humanitarian aid.
Nearly three million Cubans are experiencing daily water shortages due to a severe oil shortage, which government officials attribute to a US energy blockade. The United States — National Institute of Water Resources is operating with only 37% of its required fuel, impacting water pumping, pipe maintenance, and other essential activities. The crisis is exacerbated by aging infrastructure in cities like Cuba — Havana, Chile — Santiago, and Cuba — Matanzas. The United States government tightened sanctions on Cuba since January, and former US President Donald Trump threatened tariffs on countries supplying oil to Cuba. This has led to a significant reduction in the United States — National Institute of Water Resources' ability to purchase parts and supplies, with annual purchases dropping from $100 million to $10 million due to credit suspension. The Cuban population is also enduring daily power outages lasting up to 20 hours, compounding the economic crisis, inflation, and shortages of the past five years.
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