Sen. Ted Cruz, R-Texas, accused Panama of violating the treaty allowing its control over the Panama Canal, claiming it has facilitated illicit oil transfers from Iran and increased Chinese influence. Cruz stated that Panama’s government relies on canal profits for nearly one-tenth of its budget, while U.S. cargo constitutes three-quarters of canal transits.

The Senate committee is investigating Panama’s adherence to the 1977 Panama Canal Treaty, which mandates that the canal remains open and neutral. Panama’s President José Raúl Mulino asserted that the canal’s ownership is non-negotiable, and denied any operational role of China in its management.