Kuwait has declared force majeure on shipments of crude oil and refined products after disruptions at the Strait of Hormuz prevented some vessels from entering the Persian Gulf.
The move comes as tensions in the Strait escalated again following the U.S. seizure of an Iranian-flagged cargo vessel in the waterway.
According to Reuters, Kuwait Petroleum Corporation has notified customers that it is invoking contractual clauses allowing it to withhold certain scheduled deliveries after the blockade hindered access to the Gulf. The measure is not expected to result in a complete halt to supply.
The latest escalation follows a volatile weekend in which the Strait briefly reopened before closing again after Iran linked the reopening of the shipping lane to the lifting of the U.S. naval blockade targeting its oil exports.
Iran’s foreign ministry said it has no plans for a new round of talks following the U.S. seizure of the vessel. U.S. President Donald Trump said a delegation led by Vice President JD Vance is heading to Islamabad for talks. Pakistan has tightened security in the capital ahead of the potential negotiations.
Iran has warned that it cannot guarantee safe passage through the Strait of Hormuz if its oil exports continue to be restricted, saying that security for shipping in the waterway cannot be separated from pressure on its own crude flows.
Shipping activity in and around the Strait has been disrupted again, with vessels altering routes and operators reassessing transit risks through one of the world’s most important oil shipping lanes.
After plunging late last week, oil prices rebounded in early trading as markets reacted to the renewed disruption and the risk of further constraints on flows through the Strait of Hormuz.
The renewed pressure also comes as Iran-aligned Houthis have threatened to target the Bab el-Mandeb Strait, raising concerns about additional risks to alternative export routes for Middle East crude.
By Charles Kennedy for Oilprice.com
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