Photo: EPA
State-owned Kuwait Petroleum Corporation (KPC) has reduced oil production and refining capacity as a precautionary measure following attacks by Iran and growing threats to shipping through the Strait of Hormuz, according to a statement cited by Reuters.
The company said the move is part of its “risk management and business continuity strategy.” The decision was taken in response to Iranian threats to the safe passage of vessels through the strategic waterway, one of the world’s most important routes for transporting oil.
KPC emphasized that the adjustment is “purely precautionary” and will be reviewed as the situation develops. The company also said it is ready to restore production to previous levels once conditions allow.
The exact scale of the cuts was not disclosed. In February, Kuwait was producing about 2.6 million barrels of crude oil per day.
Regional energy disruption
Kuwait’s move is part of a broader energy crisis unfolding across the Middle East amid the military confrontation involving the United States, Israel and Iran.
Other regional developments include:
Iraq has already reduced output at several oil fields.
Qatar declared force majeure on significant volumes of gas exports, citing extraordinary circumstances beyond its control.
United Arab Emirates are widely expected by analysts to cut production next.
Oil and gas storage facilities across the Persian Gulf are rapidly filling up as hydrocarbons cannot be safely transported by sea.
Strategic importance of the Strait of Hormuz
The Strait of Hormuz is a narrow maritime corridor between Iran and Oman, measuring about 33 kilometers at its narrowest point. It serves as the only outlet from the Persian Gulf to the open ocean and is considered one of the most critical oil shipping routes in the world.
Ships operating in the area reportedly received warning radio messages from the Islamic Revolutionary Guard Corps stating: “No vessel has the right to pass through the strait.”
Iranian officials later claimed they had closed the Strait of Hormuz and threatened to destroy vessels attempting to pass. However, the United States Central Command said the strait has not been closed or mined.
Oil prices surge
Fears of supply disruptions have already shaken energy markets. Brent crude rose above $82 per barrel, gaining about 13%, the largest increase in four years.
The price shock has also affected retail fuel markets. According to NaftoRynok, fuel prices in Ukraine jumped shortly afterward. Gasoline and diesel prices at networks such as OKKO and WOG increased by about 2 UAH per liter, while liquefied gas rose by 1 UAH per liter, exceeding 40 UAH per liter.
Analysts warn that if the conflict intensifies or the Strait of Hormuz is effectively blocked, global energy markets could face a major supply shock, potentially triggering a deeper worldwide energy crisis.
