Kuwait’s oil sector has successfully managed to sustain supply and revenue flows despite ongoing disruptions in the Strait of Hormuz, underscoring the country’s resilience amid one of the most significant challenges to Gulf energy exports in recent decades, according to Dr. Mohammed Al-Shatti, Kuwait’s governor to OPEC and an oil analyst.

The Strait of Hormuz remains a critical corridor for global oil shipments, with approximately 20 million barrels of crude and petroleum products passing through daily, accounting for about 20% of worldwide petroleum consumption, according to the U.S. Energy Information Administration. The waterway has historically been vulnerable to security threats, including the Tanker War of the 1980s, when Kuwaiti tankers required international naval escorts after repeated attacks on commercial vessels in the Gulf.

Before the recent tensions, Kuwait’s daily crude oil production stood at about 2.6 million barrels, with most exports dependent on maritime routes passing through the strait. Despite renewed threats from Iran and ensuing interruptions, Al-Shatti noted that oil markets have maintained relative stability. He remarked that Iranian actions undermine regional and global energy security, contributing to market instability; however, ongoing shipments and market fundamentals have helped mitigate severe disruptions.

U.S. officials have emphasized that shipments continue flowing through the strait, with President Donald Trump noting that nearly 100 million barrels have reached global markets despite the turmoil. Al-Shatti said that improving supply and demand fundamentals have played a key role in calming energy markets. While global oil demand growth has slowed, prompting OPEC to reduce its 2026 forecast by roughly 200,000 barrels per day, price volatility has remained limited. Brent crude has hovered near $90 per barrel, while Kuwaiti crude recently dipped below $100 for the first time since tensions escalated, settling at $94.84 on June 13, according to Kuwait Petroleum Corporation.

The sector’s resilience, Al-Shatti explained, is largely due to two factors: available unused production and export capacity among Gulf producers, and the use of commercial, strategic, and floating oil inventories to cover supply shortfalls. About two months ago, the International Energy Agency authorized member countries to tap into emergency reserves, a measure that significantly eased supply concerns and helped stabilize prices alongside OPEC’s policies.

Kuwait has actively utilized its strategic crude reserves stored overseas, notably in Japan and South Korea, to maintain supply commitments and provide greater flexibility in responding to disruptions. These overseas storage arrangements have long enabled Kuwait to position crude closer to key Asian markets and to mitigate the impact of regional supply interruptions.

Even during periods when the Strait of Hormuz faced closures, Kuwait continued exporting oil to nearby Gulf markets, including Saudi Arabia, Qatar, and the United Arab Emirates, ensuring continuous revenue streams. Al-Shatti emphasized that the crisis has underscored the importance of preparedness and contingency planning within Kuwait’s oil industry, while also cautioning that strategic reserves are finite. Prolonged disruptions could deplete inventories, resulting in upward pressure on prices.

Looking forward, Al-Shatti expressed cautious optimism, indicating that markets anticipate a resolution to the tensions soon. He stressed that the situation has highlighted both the strategic significance of the Strait of Hormuz and Kuwait’s capacity to respond effectively to major disruptions in the global energy supply chain. He concluded by commending the performance of Kuwait’s oil sector workforce across all facets of the industry, describing their efforts during the crisis as a source of national pride.