Kuwait cuts oil output over disruption to shipping in Hormuz Strait

ISTANBUL

Kuwait Petroleum Corporation said Tuesday that it has reduced crude oil production due to disruptions to shipping in the Strait of Hormuz.

In a statement, the company said it was forced to cut production due to the targeting of shipping routes in the strategic waterway, calling the situation a “serious escalation that threatens global energy market stability.”

It said production could be resumed “relatively quickly” if the Iran war ends and could reach full production within 3-4 months.

The company did not disclose the new production levels.

On March 10, Kuwait reduced output to around 500,000 barrels per day, down from more than three million barrels per day before the outbreak of the US-Iran war.

The Strait of Hormuz has been effectively disrupted since early March. Around 20 million barrels of oil normally pass through it daily, and its disruption has driven up shipping costs and pushed global oil prices higher.

A regional escalation has continued to flare since the US and Israel launched a joint offensive on Iran on Feb. 28, killing so far over 1,340 people, including then-Supreme Leader Ali Khamenei.

Tehran has retaliated with drone and missile strikes targeting Israel, along with Jordan, Iraq, and Gulf countries hosting US military assets, causing casualties and damage to infrastructure while disrupting global markets and aviation.

*Writing By Khaled Badr