Kuwait has condemned Iran’s closure of the Strait of Hormuz, calling it an economic blockade that threatens global markets and could trigger a domino effect across supply chains. Sheikh Nawaf al-Sabah, CEO of Kuwait Petroleum Corp., said the move is “holding the world’s economy hostage” and announced that Kuwait has declared a force majeure on oil delivery contracts, cutting production to domestic needs only. He warned that the full restoration of Gulf oil output could take months as wells remain shut in Kuwait and neighboring countries.
Al-Sabah emphasized that the crisis extends beyond oil, affecting petrochemicals for food packaging and fertilizer shipments, which could reduce agricultural output in parts of the developing world by up to 50%. He noted that tanker and cargo traffic through the strait has plummeted, disrupting roughly 20% of the world’s oil supply. Iran’s recent missile and drone strikes have targeted Gulf infrastructure, including Kuwaiti refineries and the social security administration, contradicting Tehran’s claim that attacks were limited to U.S. assets. Al-Sabah said emergency oil releases by more than 30 nations, including the U.S., will have a limited impact on the shortfall, and there is no substitute for the strategic waterway.
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