Trump Targets Cuba Oil Supply; Iran Strike Fears Push Crude Prices Toward $72

WASHINGTON — President Donald Trump escalated global energy tensions this week by signing an executive order to impose tariffs on any nation supplying oil to Cuba, while reports of potential U.S. military strikes against Iran drove crude prices toward $72 per barrel. The administration’s dual-track pressure campaign aims to "choke off" the Havana regime following the recent ouster of Venezuela’s leadership. Brent crude is currently on track for a 14.74% monthly gain, marking its strongest performance since July 2023 as traders price in a significant geopolitical risk premium.

Tariffs Target Havana's Energy Lifeline

The White House move, formalized in a January 29 executive order, declares Cuba an “unusual and extraordinary threat” to U.S. national security. The order authorizes the Secretary of State and Secretary of Commerce to impose tariffs on any goods from countries that directly or indirectly provide oil to the island nation. According to the Associated Press, the policy primarily targets Mexico, which has historically supplied approximately 20,000 barrels per day to Cuba.

Mexican President Claudia Sheinbaum warned of a "grave humanitarian crisis" following the decree. Despite the pressure, Sheinbaum indicated her administration is analyzing the scope of the U.S. order while seeking alternatives that will not place the Mexican economy in the crosshairs of Washington's sanctions.

Iran Strike Reports Fuel Crude Rally

Simultaneously, energy markets are reacting to Reuters reports that the Trump administration is weighing military strikes against Iran to inspire "regime change." Options reportedly include targeting security institutions and ballistic missile facilities. This escalation has introduced a sharp risk premium into the market, with Brent crude futures hovering near $70.69 a barrel and West Texas Intermediate (WTI) trading at $65.21.

Traders are also monitoring the upcoming OPEC+ meeting on Sunday. Sources told Reuters that the group is likely to maintain its current production pause through March, even as prices approach the $72 threshold. This supply discipline, combined with U.S. geopolitical maneuvers, has offset previous concerns regarding a global oversupply in 2026.