The United Arab Emirates is managing output at its offshore oil fields as Kuwait began reducing production by about 100,000 barrels per day following Iranian threats to shipping through the Strait of Hormuz. Abu Dhabi National Oil Co. is adjusting offshore operations to address storage constraints, while Kuwait Petroleum Corp. is lowering production at both oil fields and refineries.

Kuwait's production cutback is expected to nearly triple to 300,000 barrels per day by Sunday as storage tanks fill up. The only export route for Kuwait's 2.57 million barrels per day output runs through the Strait of Hormuz, which has been effectively closed to maritime traffic due to escalating Middle East tensions. Brent crude prices surged to a two-year high above $93 per barrel.

The UAE is using its 1.5 million barrel-per-day pipeline to Fujairah to bypass the strait and maintain exports. Kuwait has declared force majeure on oil and refinery product sales, legally excusing it from contractual obligations. Regional producers including Iraq, Saudi Arabia, and Qatar have also implemented cutbacks as storage facilities reach capacity.