Kuwait has declared force majeure and is reducing its crude oil production amid escalating tensions in the Middle East, a move that is already impacting global fuel prices. The decision, announced on Saturday, March 7, 2026, reflects growing concerns over potential disruptions to vital energy infrastructure in the region.
While the Kuwait Petroleum Corporation (KPC) has not specified the exact volume of the production cut, the country was reportedly producing around 2.6 million barrels of oil per day in February. KPC characterized the reduction as a precautionary measure, stating it could be adjusted based on how the situation evolves, and that it is prepared to restore production to previous levels when conditions allow.
Kuwait is a significant exporter of naphtha to Asia and aviation kerosene to Northwestern Europe. The curtailment of oil production highlights the vulnerability of global supply chains to geopolitical instability, a factor increasingly relevant as energy systems grow more interconnected.
Attacks on Energy Infrastructure Raise Concerns
Although oil facilities and drilling sites haven’t been the primary targets of Iranian attacks to date, several incidents have occurred in the vicinity. These include attacks on Saudi Arabia’s Ras Tanura refinery, operated by Saudi Aramco; facilities belonging to Ras Laffan, Qatar’s largest LNG producer; two oil terminals in the United Arab Emirates; oil installations in the port of Oman; and warehouses and an office building belonging to U.S. Firm Halliburton in Basra, Iraq.
Shipping Bottlenecks Compound the Problem
A major challenge is the blockage of the Strait of Hormuz, preventing tankers carrying oil from Iraq or gas from Qatar from sailing. Storage facilities at ports and refineries are rapidly filling up due to the lack of outbound shipments. While Saudi Arabia and the UAE have pipelines south of the strait, their capacity is insufficient to handle the total volume of oil. The Fujairah terminal, located south of the strait in the Gulf of Oman, was similarly the target of an Iranian attack.
Gasoline Prices Surge in the U.S.
Gasoline prices in the U.S. Have risen sharply in recent days, increasing by nine cents per gallon. As of Saturday, March 7, 2026, the national average price for a gallon of gasoline is $3.41 (72 Czech koruna),
according to CNN.
The price of gasoline at U.S. Pumps has increased by 43 cents in just one week, marking the largest weekly increase since the beginning of March 2022, when prices began to climb sharply following Russia’s invasion of Ukraine. Diesel prices are rising even faster, increasing by 75 cents per gallon to $4.51.
On Tuesday, the average price per gallon of gasoline rose 11.2 cents in a single day, the largest increase since 2005, when Hurricane Katrina struck the U.S. Further price increases are expected, as U.S. West Texas Intermediate (WTI) crude oil rose to $90.90 per barrel on Friday, a 12.5 percent increase for the day – the largest since May 2020 during the height of the COVID-19 pandemic. WTI prices have increased by 36 percent for the week, the largest weekly increase since 1983.
