Kuwait 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, and Kuwait Petroleum Corporation notified customers on April 16 that it was invoking contractual clauses to withhold certain scheduled deliveries.
The company said the closure of the Strait of Hormuz had made it difficult to ship contracted volumes on time, and and other media outlets reported the force majeure letter to counterparties on April 22. The step was framed by Kuwait Petroleum Corporation as a targeted contractual response — the company said the measure was not expected to result in a complete halt to supply.
The practical weight of the move is immediate for buyers who rely on Gulf loadings. Kuwait ranked fifth among South Korea's crude suppliers last year and accounted for 8.7% of South Korea's total crude imports, figures that make even a partial disruption consequential for some purchasing plans and refining schedules.
Yang Ki-wook said the declaration would have no effect on South Korea because Kuwaiti crude had already stopped arriving after the Strait of Hormuz was shut following the Middle East war. That assessment comes against a backdrop of rising pump prices: South Korea's nationwide average gasoline price at stations rose above 2,000 won a liter on April 17, and diesel prices were also approaching 2,000 won a liter.
Geography helps explain Kuwait's vulnerability. Kuwait is located deep inside the Persian Gulf, and unlike Saudi Arabia and the United Arab Emirates, it has no alternative route for exports that bypasses the Strait of Hormuz. Saudi Arabia and the UAE can reroute some exports through inland pipelines; Kuwait cannot, so any blockade or closure that stops ships from entering the Gulf directly threatens its ability to meet contracted deliveries.
The tension in the story is the gap between reassurance and exposure. Kuwait Petroleum Corporation has signaled the force majeure will not amount to a complete supply stoppage, but the company also explicitly tied the action to shipping impossibilities caused by the Strait's closure. Buyers and refiners who must plan months ahead face uncertainty: the letter invoked contractual relief, yet geography and the ongoing closure make repeated or prolonged disruption plausible.
For South Korea, the immediate damage appears limited because Kuwaiti cargoes had already stopped arriving when the Strait was shut, Yang Ki-wook said, but that does not insulate other markets or shorter-term supply chains from shocks. Importers elsewhere that still expected Kuwaiti loadings must now scramble to find replacements or accept delayed deliveries, and refiners juggling feedstock grades will have to adjust runs or sour/sweet mixes accordingly.
The next phase will be how swiftly buyers can reallocate cargoes and whether the Strait of Hormuz reopens for routine traffic. If the closure persists, contractual force majeure notices could multiply and the temporary withholding of deliveries that Kuwait Petroleum Corporation describes may become a recurring feature of Gulf export markets. That, in turn, would raise costs for refiners and could sustain upward pressure on retail prices already visible in markets such as South Korea.
Kuwait's declaration is a clear reminder that geography still governs oil flows: a single chokepoint can force a major producer to suspend contractual obligations, and for countries without alternative routes, that suspension is not merely legal language but an operational reality. Buyers will now be judged on how quickly they can adapt — and Kuwait's dependence on the Strait means the country will remain exposed until maritime access is restored.
