No ships have been passing through the Strait of Hormuz for more than a week. After Qatar, Kuwait now also has to stop oil production.
03/08/2026, 09:37March 8, 2026, 9:40 a.m
Amy Walker / t-online
According to Reuters information, Kuwait has now also reduced its oil production due to the ongoing war with Iran. State-owned Kuwait Petroleum Corporation (KPC) has reduced crude oil production and refinery transit, according to a trader’s note on Saturday obtained by the news agency.
Kuwait also has to limit oil production. (archive image)Image: AFP FILES
The reasons given were Iran’s explicit threats against shipping in the Strait of Hormuz and ongoing Iranian attacks on Kuwait. In addition, there are hardly any ships available in the Persian Gulf for transporting crude oil and oil products. The CCP referred to “force majeure” in its actions. The company initially did not want to comment officially.
“Force Majeure”
“Force majeure” is a contractual clause that can exempt a contractual partner from fulfilling the contract. This means that the contractual partner is not liable if he cannot fulfill the agreed services. It is drawn if unforeseeable, external, unavoidable events occur that make the fulfillment of the contract impossible. These include wars, pandemics or other natural disasters.
Oil and gas prices are likely to continue rising
The development could drive energy prices further higher. Crude oil, for example, had gradually become drastically more expensive in the past few days. The Brent variety, for example, cost around $73 per barrel (159 liters each) at the end of February, immediately before the start of the war; on Friday it was just under $93. In Germany, this had already had a noticeable impact on gasoline and diesel prices.
In Europe, gas prices in particular have risen due to the Iran war, as LNG transport is also affected in addition to oil production. Although Europe hardly sources any energy from the region, the crisis is forcing large buyers such as China and India to buy on the global market. This drives up prices everywhere.
Kuwait follows Qatar and Iraq – others could follow
The KPC’s letter left it unclear how much the funding had been cut. In February, Kuwait still produced around 2.6 million barrels per day. The measure is precautionary and will be continually monitored, it said. KPC is ready to ramp up production again as soon as conditions allow.
Kuwait follows Iraq and Qatar, which have also reduced their production and gas deliveries. The war has been blocking the Strait of Hormuz, the world’s most important waterway for oil transport, for around a week. Around 20 percent of the global oil and liquefied natural gas (LNG) supply goes through them. Experts expect that the United Arab Emirates and Saudi Arabia will soon have to reduce their production as their storage capacities are running out.
Sources used:
- Reuters news agency
- Own research