As an important ally of the United States, home to about 13,500 US troops and playing a key logistics center in the region, Kuwait previously produced about 2.7 million barrels/day and exported about 1.85 million barrels/day. Kuwait's crude oil is mostly transported to Asian markets such as China, India and South Korea.
On April 17, Kuwait Oil Corporation declared a state of force majeure, temporarily suspending exports after operations across the Strait of Hormuz were almost blockaded in the context of the Iranian conflict.
Oil accounts for about 50% of Kuwait's total GDP, while oil exports bring in about 90% of state budget revenue.
As of early May 2026, Kuwait's oil production has fallen to about 1.2 million barrels per day.
Data from the Tanker Trackers page shows that although Kuwait continued to exploit crude oil, it did not export throughout April, the first interruption since the 1991 Gulf War.
Oil prices have fluctuated sharply since the US and Israel attacked Iran in late February, leading to the closure of the Hormuz Strait. In the context of ongoing negotiations and no clear solution, crude oil prices have surpassed the 120 USD/barrel mark in recent days, reaching the highest level since 2022.
