Kuwait cuts oil output by up to a quarter as the Hormuz crisis locks in exports

With tanker traffic through the Strait of Hormuz reduced to a trickle, Kuwait has been forced to cut oil output and return surplus crude to storage. According to a Rystad Energy forecast reported by energy-trade outlets in July, Kuwait's July production could fall by as much as a quarter, from about 1.6 million barrels per day in June to near 1.2 million bpd.

Unlike Saudi Arabia and the UAE, which have pipelines to bypass Hormuz, Kuwait has no export infrastructure outside the waterway, leaving it especially exposed to the disruption; it is shutting wells and storing crude.

Reduced Gulf supply is one factor keeping global oil prices elevated, which matters for Iran's oil-dependent economy and its currency market.