What's up on the Ruta Pantera?

• Latest travel news
• Country advisories
• Travel planning

The New Map of Washington’s Sanctions Is Reaching Deeper Into Latin America

The new U.S. campaign against Iran is moving the economic confrontation into territory that could affect Latin America as well. On August 24, the U.S. Treasury Department announced Operation Economic Outcast, an initiative designed to restrict Tehran’s sources of revenue and disrupt the international networks that allow them to remain active. The first round targeted nearly 60 individuals, companies and vessels connected to Iranian oil, military and nuclear procurement, cyber operations and sanctions-evasion mechanisms. The measures also bring aviation, maritime transportation, technology, gold and digital assets into the broader pressure campaign.

The international dimension of the operation is particularly significant. Washington is seeking to raise the cost for foreign entities that facilitate certain Iranian interests, even when those companies are not American. The possibility of losing access to financial institutions connected to the United States can influence corporate decisions well before a company itself is formally sanctioned. Reuters reported that the Trump administration is considering broader use of secondary sanctions as part of the strategy.

Latin America is not Iran's principal commercial arena, but several governments in the region maintain relationships with Tehran. Venezuela has longstanding energy cooperation with Iran, Cuba and Nicaragua maintain political and economic ties with the Iranian government, and Brazil has historically been Tehran's principal commercial partner in the region. The exposure is therefore different from one country to another and does not mean that any of these governments is automatically subject to the new measures.

Venezuela, Cuba And Nicaragua Face A New Calculation

Venezuela represents the most consequential Latin American case because its relationship with Iran has been built largely around energy. Caracas and Tehran have developed cooperation involving oil, industrial equipment, technical assistance and other forms of economic exchange, particularly during periods when both governments faced extensive U.S. restrictions. Iranian assistance has also played a role in helping Venezuela maintain parts of its oil infrastructure.

Venezuela's position in the international economy has since evolved. The country needs investment, technology and access to international markets, while the United States continues to exercise considerable influence over its energy sector. For companies involved in Venezuelan energy operations, a transaction involving a sanctioned Iranian entity could therefore create consequences extending beyond the value of the deal itself, potentially affecting banking relationships, insurers and international partners.

Cuba and Nicaragua face different circumstances but remain relevant. Both governments maintain ties with Tehran while also operating under separate U.S. sanctions programs. The Office of Foreign Assets Control currently maintains specific programs covering Cuba, Nicaragua and Iran, among other jurisdictions. A company operating across more than one of these markets may therefore already face significant compliance requirements before considering additional exposure to Iranian transactions.

Brazil presents another form of exposure because of the volume and composition of its trade with Iran. Its relationship has traditionally centered on agricultural commodities and food products, rather than the energy and strategic cooperation that characterize the Venezuela-Iran relationship. Any change in U.S. policy will therefore need to be assessed according to the sector and transaction involved rather than treated as a uniform restriction on Latin American commerce with Tehran.

For companies operating across several markets, the difficulty can arise even when an individual transaction is not prohibited. A Latin American exporter may depend on a foreign bank to receive payment, an international insurer to cover its cargo or a shipping company subject to U.S. regulations. As the sanctions regime becomes more complex, those commercial relationships become an increasingly important part of the decision over whether an Iranian transaction remains viable.

From Energy Markets To The Cost Of Travel

Tourism enters this story through the costs that sustain international travel rather than because visitors themselves are the target of the measures. The inclusion of aviation and maritime transportation in the U.S. campaign is significant because both sectors underpin the movement of people and goods. At the same time, the conflict surrounding the Strait of Hormuz has introduced additional uncertainty into global energy markets.

Under normal conditions, roughly 30% of the world's seaborne oil trade passes through the Strait of Hormuz, according to the International Crisis Group. A prolonged disruption in that corridor can therefore affect energy prices well beyond the Persian Gulf.

The consequences for Latin America are likely to vary according to each economy's energy profile. Major oil producers can benefit from higher international prices and increased interest from buyers seeking supplies outside affected markets. Countries that rely more heavily on imported fuel face greater transportation costs and inflationary pressure. The Columbia Center on Global Energy Policy has highlighted Latin America's potential to gain greater strategic importance as an energy supplier as disruptions reshape global markets.

For tourism, those changes can eventually reach airfares, ground transportation, hotel operations and food distribution. The extent of the impact will depend on how long energy volatility persists and how much of the additional expense companies absorb rather than pass on to consumers.

The dollar provides another channel through which the consequences can travel. A Latin American company can trade with Iran without operating in the United States while still depending on correspondent banks, insurers, payment systems or financial institutions connected to the American market. If those intermediaries determine that an Iranian transaction carries excessive sanctions risk, the commercial relationship can become impractical even without a direct prohibition against the Latin American company.

Washington's ability to apply that pressure must nevertheless be balanced against the importance of the countries involved. China remains a major purchaser of Iranian oil, and imposing secondary sanctions on large financial institutions connected to that trade could produce considerably broader economic and diplomatic repercussions. Reuters has identified that challenge as one of the central calculations facing the Trump administration as it expands its economic campaign.

For Latin America, the development comes as governments seek to maintain commercial relationships with the United States, China, Europe and other markets simultaneously. A more aggressive American policy toward Iranian intermediaries could increase the cost of that diversification, particularly for companies dependent on international financial services or logistics networks with U.S. exposure.

The most significant consequence for the hemisphere may therefore not be a new list of sanctioned countries, but the way banks, energy companies, shipping operators, insurers and multinational corporations adjust their activities in response to increased regulatory risk. If those decisions remain concentrated on Iranian-linked transactions, the regional effect may be limited. If the measures expand toward major international intermediaries, the economic repercussions could be considerably broader.

For tourism, the decisive factor will be the duration of the instability. A brief disturbance in energy markets can be absorbed within normal operating costs. A prolonged period of volatility can influence airline pricing, household travel budgets and destination choices. The evolution of U.S. policy toward Iran will therefore have implications for Latin America that extend beyond diplomacy, reaching the energy, financial, transportation and currency markets that ultimately shape the cost and movement of travel across the hemisphere.

By Heydi Bernal for Ruta Pantera on 8/25/2026 8:20:23 PM

Please leave a comment about this article: