March 7 (GeokHub) — Kuwait has begun reducing crude oil production and declared force majeure on shipments as escalating tensions linked to the Iran conflict disrupt energy flows across the Middle East.
Kuwait Petroleum Corporation (KPC) initiated the precautionary cuts on Saturday after shipping routes in the region faced severe disruption, extending a wave of production adjustments already seen in Iraq and Qatar.
The crisis has effectively halted tanker movement through the Strait of Hormuz for more than a week. The strategic waterway carries roughly 20% of the world’s oil and liquefied natural gas supply, making it one of the most critical energy routes globally.
In a notice circulated to trading partners, Kuwait’s state oil company said it had reduced crude production and refinery operations due to security risks tied to the regional conflict.
The company did not specify the size of the production cut. Kuwait’s crude output stood at about 2.6 million barrels per day in February, according to industry data.
KPC said the reduction was a precautionary measure and would be reassessed as conditions evolve. The company added it was prepared to restore output levels once the security situation improves.
Force majeure was declared due to threats against shipping in the Strait of Hormuz, ongoing regional hostilities, and what the company described as a near-total shortage of tankers available to transport oil from the Arabian Gulf.
Kuwait remains a major exporter of refined petroleum products. It supplies large volumes of naphtha to Asian markets, where it is used in petrochemical manufacturing, and is also a key exporter of jet fuel to north-western Europe.
Energy analysts warn that if the disruption continues, other major Gulf producers could face similar challenges. Limited storage capacity may force countries such as Saudi Arabia and the United Arab Emirates to consider output cuts if exports remain blocked.
The conflict has already spread across several fronts in the region, with Iran targeting countries hosting U.S. military installations while Israel has expanded strikes beyond its borders following cross-border attacks from Hezbollah.
Prolonged disruption in the Strait of Hormuz could tighten global oil supplies and increase volatility in energy markets worldwide.
