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Kuwait Halts Oil Shipments Over Hormuz Blockade

Bloomberg Markets •
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Kuwait has declared force majeure on all crude oil and refined product shipments after the Strait of Hormuz blockade made it impossible to fulfill customer obligations. The decision affects deliveries to customers who cannot bring vessels into the Persian Gulf due to the shipping disruption. This marks a significant escalation in the region's energy crisis.

The force majeure declaration comes as Kuwait joins other Gulf producers in suspending shipments through the strategic waterway. The Strait of Hormuz handles roughly 20% of global oil trade, making any disruption particularly impactful. Kuwait's state-run oil company is now scrambling to find alternative routes or storage solutions for its petroleum products.

This development compounds existing supply concerns in global oil markets already facing volatility. The blockade has effectively cut off Kuwait's primary export route, forcing the country to invoke the legal clause that releases it from contractual obligations when circumstances beyond its control prevent delivery. The situation highlights the vulnerability of Middle East oil exports to geopolitical tensions.