Kuwait has invoked force majeure on its oil and refined product shipments as the ongoing halt in the Strait of Hormuz continues to disrupt one of the world’s most critical energy chokepoints. The declaration, first issued by Kuwait Petroleum Corporation (KPC) in early March 2026, highlights the severe impact of regional tensions on global oil supply chains.
What is Force Majeure?
Force majeure is a contractual clause that frees parties from obligations when unforeseen events—such as war, blockades, or threats to safety—make performance impossible. Kuwait Petroleum Corporation invoked it due to:
- Explicit threats by Iran against safe passage of vessels through the Strait of Hormuz.
- Continued regional attacks and instability affecting Kuwait.
- Near-total absence of available tankers in the Arabian Gulf willing to transport crude oil and petroleum products.
Why the Strait of Hormuz Matters
The Strait of Hormuz is the world’s most vital oil artery, handling roughly 20% of global oil and LNG supply. It serves as the only sea route for oil exports from major producers like Kuwait, Saudi Arabia, Iraq, the UAE, and Qatar.
Disruptions here—stemming from the broader Middle East conflict that began in late February 2026—have led to:
- Tankers being unable to enter or exit the Persian Gulf.
- Storage tanks reaching capacity across the region.
- Forced production cuts to avoid overflows.
As of mid-April 2026, shipping traffic remains at a virtual standstill despite occasional optimistic announcements about reopening. Claims of the strait being “open” (including statements linked to ceasefires or diplomatic progress) have caused short-term oil price volatility, but practical risks, including potential mines, attacks, and ongoing blockades, continue to deter most commercial vessels.