In light of Iran's blockade of the Strait of Hormuz, Kuwait has become the first Gulf country to declare a 'force majeure', prompting it to reduce oil production significantly. The Kuwait Petroleum Corporation announced that this preventive measure is in response to ongoing threats from Iran and the risk to maritime navigation in the strait. As a result, Kuwait invoked the 'force majeure' clause, which exempts them from legal liabilities for contractual breaches under circumstances such as war or natural disasters, due to the fact that oil and refined products can no longer be effectively transported.

Kuwait explained that the reason for the oil production cuts is that there are virtually no vessels available for transporting oil and petroleum products. Unlike Saudi Arabia and the UAE, which can reroute some of their exports through land pipelines bypassing the Strait of Hormuz, Kuwait relies heavily on maritime transport through the strait, making them particularly vulnerable to disruptions. Recent attacks, including a U.S. airstrike late last month, prompted Kuwait to declare this state of emergency regarding their oil exports, marking them as the first in the region to do so.

While Kuwait has not specified how much it intends to reduce its oil production, it currently produces around 2.6 million barrels per day. Iraq had previously announced a reduction of 1.5 million barrels due to storage capacity issues but did not declare a force majeure. With major oil-producing countries like the UAE and Saudi Arabia also nearing storage limits, forecasts indicate that more extensive production cuts may soon be necessary across the region, as pressure mounts on their storage facilities.