The Strait of Hormuz is blocked, threatening the energy lifeline. Kuwait plans to increase overseas oil storage and search for alternative pipelines.

According to the head of the marketing department of the Kuwait National Energy Company, after the Gulf War disrupted shipping through the Strait of Hormuz, Kuwait will consider increasing its overseas oil reserves to enhance its ability to supply oil to the global market. Sheikh Khalid Sabah, the International Marketing Director of Kuwait Petroleum Corp., stated at the S&P Global Energy MPGC 2026 conference in London that even though it is not completely blocked, the Strait of Hormuz is currently unsafe for energy transportation. He mentioned that Kuwait will be looking for opportunities to store more oil overseas and is discussing potential alternative pipeline options with neighboring countries. Kuwait's energy exports depend entirely on oil tankers passing through the Strait of Hormuz out of the Persian Gulf. In recent years, the country has reached agreements to store small amounts of oil in South Korea and Japan. Sheikh Khalid stated that during the current conflict, Kuwait has significantly reduced its crude oil production but is still operating its oil fields at the lowest levels to avoid damage to facilities and enable a quick return to normal. The military actions taken by the US against Iran starting in late February have caused unprecedented turmoil in the global market, affecting approximately one-fifth of the daily oil and gas supply from the Persian Gulf. Since the outbreak of the conflict, oil prices have soared by over 35%. Currently, a fragile ceasefire agreement is being difficult to maintain, adding uncertainty to the future freedom of navigation in the Strait of Hormuz and the feasibility as an export route for Gulf countries. Sheikh Khalid stated that Kuwait has been selling refined petroleum products to other countries in the Gulf region, enabling the country to maintain the operation of some of its refineries. However, he did not provide detailed information on the specific operations of the country's three major refineries. Gulf countries are currently using refineries to meet domestic demand and seeking to export excess products that have not been consumed domestically. He added that within a few weeks of the Strait of Hormuz reopening, Kuwait can restore refinery capacity to normal levels; within 6 to 8 weeks, crude oil production can reach 70% of normal levels.