The state-owned Kuwait Petroleum Corporation (KPC) has begun reducing oil production and declared force majeure, adding to earlier oil and gas reductions from Iraq and Qatar as the US-Iran war blocked shipments from the Middle East for more than a week now.
- The war has blocked the world's most important oil artery, the Strait of Hormuz, which is responsible for 20% of global oil supply.
- Oil barrels are piling up in the Middle East as tankers are not moving. Gulf Arab countries are forced to lower production when they run out of space to store barrels.
Kuwait Petroleum Corporation (KPC) did not say by how much it would reduce output. It said the reduction was precautionary and would be reviewed as the situation develops and it remained ready to restore production levels when conditions allow.
KPC is a major exporter of naphtha to Asia and a major jet fuel exporter to north-west Europe. Naphtha is a feedstock for petro-chemicals production. In February 2026, Kuwait produced around 2.6 mb/d of crude oil (Reuters, 07/03/2026).