Kuwait's oil output nearly tripled in June after an interim peace deal lifted the force majeure that had throttled Gulf exports during the US-Iran conflict. Production still sits well below its pre-conflict level, and the disruption pushed crude above $100 a barrel at points during the fighting.
Kuwait pumped 1.65 million barrels per day in June, up from just 580,000 bpd in May — the country's highest output level since the US-Iran conflict turned the Strait of Hormuz into a no-go zone earlier this year. Kuwait was producing around 2.5 million bpd before the conflict erupted, so current output remains roughly 850,000 bpd below its pre-conflict baseline.
The Strait of Hormuz shutdown
The disruption began in late February 2026, when US and Israeli strikes on Iran triggered a cascade of retaliatory measures. Iran then closed the Strait of Hormuz, the waterway through which roughly a quarter of the world's seaborne oil trade transits, choking crude oil exports out of the Gulf.
Gulf producers collectively cut between 6.7 and 10 million bpd by mid-March. Kuwait Petroleum's force majeure stayed in place until June 18, when an interim peace agreement created enough breathing room for exports to resume.
Production ramps as prices push past $100
Once the force majeure lifted, output ramped aggressively, with daily production hitting peaks of 1.9 million bpd during the final ten days of June. With supply disruptions of that magnitude, crude pushed above $100 per barrel at various points during the conflict.
Kuwait announced a $16 billion pipeline lease-leaseback deal with Blackstone, KKR, and Brookfield in July, signaling that major institutional investors are betting on Kuwait's long-term production capacity even as short-term risks remain elevated.
Source: Crypto Briefing
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