The Kuwait Petroleum Corporation (KPC) officially declared “force majeure” and began cutting its crude oil production and refining operations. This emergency move comes as the conflict between the United States, Israel, and Iran enters its second week, effectively shutting down the Strait of Hormuz. This narrow waterway is the world’s most critical energy artery, handling approximately 20% of the global supply of oil and liquefied natural gas. KPC justified the decision by citing explicit Iranian threats against shipping, ongoing attacks on Kuwaiti interests, and a total lack of available vessels willing to enter the Arabian Gulf due to the high risk of missile and drone strikes.
Kuwait Petroleum Corporation (KPC) announces that in light of the ongoing aggression by the Islamic Republic of Iran against the State of Kuwait, including Iranian threats against safe passage of ships through the Strait of Hormuz, KPC has implemented a precautionary reduction in… pic.twitter.com/tOmwNK7ykk
— KPC | مؤسسة البترول الكويتية (@kpcofficialkw) March 7, 2026
The impact of Kuwait’s withdrawal from the market is expected to be severe, as the country typically exports 2.6 million barrels of oil per day and is a major supplier of jet fuel to Europe and naphtha to Asia. With Qatar and Iraq having already made similar declarations, industry analysts warn that Saudi Arabia and the United Arab Emirates may soon be forced to follow suit as their domestic storage facilities reach maximum capacity. The inability to ship products out of the region has turned the Gulf into a “warlike operations area,” causing global energy prices to skyrocket. KPC stated that the production cuts are a precautionary measure to ensure business continuity and that operations will only be restored once safe passage for tankers can be guaranteed.
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