Kuwait's Oil Future Hangs in Balance with Hormuz Strait Disruptions

Kuwait's oil sector is struggling to recover from the ongoing conflict around the Strait of Hormuz. The Gulf state depends heavily on oil exports, with over 90% of government revenue linked to crude sales.

The country relies on the Strait of Hormuz for its exports as it lacks pipelines bypassing the strategic waterway. Kuwait Petroleum Corporation chief executive Shaikh Nawaf Saud Al-Sabah described the crisis as the sector's toughest challenge since Iraq's 1990 invasion.

Al-Sabah mentioned that Kuwait could return to pre-war production levels once the strait fully reopens and maritime movement resumes, but for now, it continues to face disruptions from the wider regional conflict. Iranian strikes have targeted water desalination facilities and energy installations, including petroleum infrastructure and US military bases.