Kuwait Boosts Oil Production After Strait of Hormuz Reopens

An interim peace deal between the United States and Iran has reopened the Strait of Hormuz, ending a dual blockade that lasted over three months. Following the agreement, Kuwait Petroleum Corporation announced it will immediately lift all force majeure notices and increase daily oil production to over 2 million barrels within one week. Output had previously plummeted to 500,000 barrels per day from a pre-war level of 2.5 million.

Kuwaiti officials stated that essential repairs to energy infrastructure and transport networks targeted during the conflict are complete. The company expects to fully restore pre-war production levels within weeks as regular international commercial shipping returns to Kuwaiti ports. Other regional producers, including Saudi Arabia and Iraq, are also boosting supplies as tankers return to the region.

Despite the reopening, Goldman Sachs Group Inc. projects that oil flows through the strait will only recover to 70% of pre-war levels. In response to the instability, the United Arab Emirates is pursuing a strategy to eliminate its dependency on the waterway by expanding ports on the Gulf of Oman coast. Similarly, Kuwait is negotiating with Saudi Arabia and the UAE to expand alternative pipeline systems to ensure more stable export routes.