Kuwait's state-owned Petroleum Corporation (KPC) announced on Saturday it is implementing a precautionary reduction in crude oil production and refining operations, a direct response to what it termed "ongoing aggression" from Iran and threats to shipping in the Strait of Hormuz. The move signals a deepening energy crisis across the Gulf, which began after joint US-Israeli military strikes on Iran in late February 2026, prompting retaliatory Iranian attacks on Gulf Arab states hosting American military installations.
The decision by Kuwait, a major OPEC producer, exacerbates a critical disruption to global energy supplies. The Strait of Hormuz, a chokepoint for a fifth of the world's oil, has seen commercial traffic grind to a near-total halt, with hundreds of vessels stranded. This maritime shutdown is forcing producers to slash output as regional storage facilities rapidly approach capacity. Iraq has already curbed production, Saudi Arabia has halted operations at its largest refinery, and Qatar has been forced to shut down the world's biggest liquefied natural gas (LNG) export facility.
While KPC did not specify the volume of the reduction, the cumulative effect of regional shutdowns has pushed global oil prices higher and raised fears of a severe economic impact. Qatar's Energy Minister, Saad al-Kaabi, warned that a prolonged conflict could force all Gulf energy exporters to suspend shipments within weeks and drive oil prices to $150 a barrel. The situation remains volatile, with Iranian President Masoud Pezeshkian apologizing to neighboring countries for retaliatory strikes while vowing to continue the conflict against the U.S. and Israel.
ISN MEDIA
