Kuwait faces energy crisis amid Strait of Hormuz tensions

Kuwait is facing a significant economic crisis as conflict between the United States and Iran disrupts energy exports through the Strait of Hormuz. Because Kuwait lacks pipelines to bypass the waterway, its petroleum sector—which accounts for approximately 90 percent of government revenue—is heavily dependent on the contested strait. Kuwait Petroleum Corporation (KPC) chief executive Shaikh Nawaf Saud Al-Sabah described the situation as the toughest crisis for the oil sector since the 1990 invasion by Iraq.

While the country has avoided the direct physical destruction seen in previous conflicts, it has faced Iranian strikes on energy installations, water desalination plants, and petroleum infrastructure. KPC previously declared force majeure due to these unforeseeable circumstances, though the notice was lifted in June.

Parallel to these security challenges, the bilateral relationship between Kuwait and India is evolving. While Kuwait remains a vital energy supplier to India, the partnership is expanding beyond oil to include cooperation in technology, healthcare, food security, education, and investment as Kuwait seeks economic diversification.