Kuwait declares force majeure on oil exports as Hormuz crisis deepens

Kuwait Petroleum Corporation (KPC) has declared force majeure on its crude oil and refined product exports after the Strait of Hormuz remained effectively shut for an eighth straight day, in a fresh sign of deepening disruption across Gulf energy markets. Reuters reported on Saturday (March 7, 2026) that KPC had also started a precautionary reduction in crude production and refining throughput.

KPC cuts production as exports stall and storage fills up

KPC said the move was driven by explicit Iranian threats to shipping through the Strait of Hormuz and by the near-total absence of tankers in the Arabian Gulf willing to make the passage. The company did not disclose the scale of the production cuts, but Reuters said Kuwait had been producing about 2.6 million barrels per day in February.

The production curbs reflect mounting logistical pressure as exports remain blocked and domestic storage fills up. Kuwait is particularly exposed because, unlike some regional producers, it lacks major export pipelines that bypass the strait, leaving it heavily dependent on the waterway for overseas shipments.

Kuwait becomes latest Gulf producer hit by Hormuz shutdown

Kuwait is now the latest Gulf exporter forced to take emergency action as the regional conflict disrupts energy flows. Reuters reported that Iraq has already cut oil production by nearly 1.5 million barrels per day, while Qatar earlier declared force majeure on liquefied natural gas exports. Abu Dhabi National Oil Company, by contrast, said it was still managing offshore output and using alternative routes where possible.

The latest disruption added to volatility in global energy markets. Reuters reported that oil prices have surged more than 25% since the conflict began, while other Reuters market coverage said US crude jumped about 12% on Friday alone as traders reacted to worsening supply risks. Analysts cited by Reuters have warned Brent could test $120 a barrel if tensions persist, while some earlier Reuters analysis flagged $120-$150 as a possible extreme-case range in a prolonged shutdown.

KPC said the declaration formed part of its broader risk-management and business-continuity planning, and that it stood ready to restore production once security conditions stabilise. The announcement highlights how quickly the Hormuz crisis is turning from a shipping disruption into a broader supply shock for global oil and fuel markets.