US tightens sanctions on Cuba

The United States has recently intensified sanctions against Cuba, targeting specific financial transactions and travel for American citizens. The Treasury Department's Office of Foreign Assets Control (OFAC) announced these new measures on Tuesday, prohibiting indirect financial dealings with sanctioned Cuban entities, especially those connected to the security forces and Gaesa, the island's economic conglomerate owned by the military.

OFAC has also prohibited so-called U-Turn transactions, which previously allowed US banks to process dollar payments involving Cuba, provided the transactions did not involve American citizens and were outside the US.

These new regulations also restrict US banks from opening and maintaining accounts solely in the name of Cuban nationals who are independent private sector entrepreneurs. This decision was made during Democrat Joe Biden's presidency, from 2021 to 2025, to support Cuba's emerging private sector. However, the new regulations limit the types of travel permitted for American citizens under former President Barack Obama's administration (2009-2017).

Previously, cultural exchange trips, people-to-people business conferences, and meetings required authorization.

The strained relations between the US and Cuba have escalated since Donald Trump returned to power in January 2025. The Republican leader has accused Cuba, located just 150 kilometers from Florida, of posing a significant threat to the US. Since January, Washington has imposed a de facto oil embargo on the island nation of 9.4 million people, leading to a severe economic and energy crisis.