Kuwait Halts Oil Exports for First Time Since 1991 Gulf War Amid Strait of Hormuz Closure

Kuwait exported zero barrels of crude oil last month, according to data from a shipping monitor, marking the first such halt since the 1991 Gulf War. A major US ally hosting around 13,500 American troops and serving as a key regional logistics hub, Kuwait previously produced about 2.7 million barrels per day (bpd) and exported roughly 1.85 million bpd, with most shipments going to Asian markets including China, India, and South Korea. On April 17, Kuwait Petroleum Corporation declared force majeure, suspending exports after traffic through the Strait of Hormuz was effectively halted amid the ongoing US-Israeli war with Iran. Oil accounts for roughly 50% of Kuwait's total GDP. Petroleum exports generate about 90 of the government's budget. As of early May 2026, Kuwait's oil output has fallen to around 1.2 million barrels per day, CNBC reported. Data from Tanker Trackers showed that while Kuwait continued producing crude, it did not export any in April, the first such halt since the 1990-1991 Gulf War. During that conflict, Iraqi forces under Saddam Hussein invaded Kuwait, prompting a US-led coalition to launch a military campaign that forced their withdrawal in early 1991. Oil prices have surged since the US and Israel attacked Iran in late February, prompting the closure of the Strait of Hormuz, a critical chokepoint handling about one-fifth of global oil and LNG flows. While Iran has kept the vital waterway closed to hostile ships, the US Navy has maintained a blockade of Iranian ports in the Persian Gulf. With negotiations ongoing and no clear solution, crude has climbed above $120 per barrel in recent days, reaching its highest levels since 2022.