Brent closes at $112.57, its highest level since 2022: What does it mean for Cuba?

The Brent oil barrel for delivery in May closed this Friday at 112.57 dollars, its highest price since July 2022, amid rising geopolitical uncertainty in the Persian Gulf.

The weekly increase reflects that the market does not perceive signs of easing in one of the major energy routes in the world.

Just on the last day, the benchmark crude oil in Europe rose by $4.56, an increase of 4.22% compared to the previous closing of $108.01.

For its part, Texas intermediate oil (WTI), a benchmark in the United States, reached 99.64 dollars per barrel, levels not seen since the beginning of the war in Ukraine.

The rise in prices is closely linked to the situation in the Strait of Hormuz, through which nearly 20% of the world's oil passes.

The lack of security guarantees on that strategic route was evidenced when two Chinese cargo ships had to turn back while attempting to access the strait, according to a report from EFE.

Tension arises amid the confrontation between the United States and Iran. Although President Donald Trump postponed potential military action against Iranian oil facilities until April 6, the market is dominated by a perception of risk.

Iran has used control of the strait as a pressure tool, raising uncertainty about global supply.

This situation has direct consequences for Cuba, whose energy crisis worsens with each rise in oil prices. The country relies on fossil fuels for over 95% of its electricity generation, but lacks liquidity and access to financing to acquire crude oil on the international market at these prices.

The island is facing a critical situation, with prolonged blackouts, generation deficits of up to 1,800 megawatts, and an electrical system that has deteriorated due to decades of lack of investment and maintenance.

Although the government attributes the fuel shortage to U.S. sanctions, the structural issues within the energy system are crucial in the current collapse.

The rising cost of crude oil not only further limits the capacity to import fuel but also impacts the economy as a whole. The shortage of diesel affects transportation, food production, and the operation of small and medium-sized enterprises, while the cost of living continues to rise.

In this context, the rise in oil prices acts as an aggravating factor of a structural crisis in Cuba, exacerbating the economic and social deterioration in a country that is already facing severe energy constraints.