Kuwait declares force majeure, cuts oil output as Strait of Hormuz disruptions deepen

2026-03-07 - 20:16

Kuwait Petroleum Corporation (KPC) has begun reducing crude oil production and declared force majeure amid escalating conflict in the Middle East that has disrupted energy shipments through the region. According to a trade notice, the move came as the ongoing war involving Iran and the United States threatened the safety of maritime traffic in the Strait of Hormuz — one of the world’s most critical energy shipping routes. KPC said the decision was taken as a precautionary measure after explicit threats from Iran against vessels transiting the Strait and a near absence of ships in the Arabian Gulf capable of transporting crude oil and petroleum products, according to Reuters. The Strait of Hormuz handles about 20 percent of global oil and liquefied natural gas (LNG) supplies, making it the most important energy corridor in the world. Continued disruptions have already prompted production cuts in Iraq and Qatar, while analysts warn that the United Arab Emirates and Saudi Arabia may also be forced to reduce output if storage capacity becomes strained. KPC did not specify the scale of its production cuts. Kuwait had been producing around 2.6 million barrels of crude oil per day in February. The company noted that the reduction will be reviewed as the situation evolves, adding that it remains ready to restore production levels once conditions allow. KPC is a major exporter of naphtha to Asia and jet fuel to north-west Europe, making the disruption significant for global energy markets.