Kuwait's Oil Output Plummets as Hormuz Conflict Bites

Kuwait's oil production is expected to drop significantly in July due to the ongoing conflict in the Strait of Hormuz, according to analysts at Rystad Energy.

The research group forecasts that Kuwait's output will fall to 1.2 million barrels per day (bpd) in July, down from around 1.6 million bpd in June.

Kuwait lacks a bypass route for its oil exports, unlike other Gulf states such as Saudi Arabia and the UAE, making it particularly vulnerable to disruptions in the waterway.

The country's two main refineries, Mina Al-Ahmadi and Mina Abdullah, suffered severe damage in the conflict and may take years to recover, with estimated repair costs of up to $2 billion.