Gulf Producers Find Workarounds As Hormuz Tensions Persist

Crude oil exports from Kuwait have rebounded to around 1 million barrels per day, recovering two-thirds of the 1.6 million bpd shipped through the Strait of Hormuz before the Iran conflict, according to a senior official at state-owned Kuwait Petroleum Corporation. The company has managed to increase its crude oil shipments in recent weeks, utilizing ship-to-ship transfers outside the Strait of Hormuz to circumvent potential tensions.

However, this workaround comes at a premium, as buyers will need to pay more to compensate for the risks associated with transiting the critical chokepoint. Conversely, those willing to load cargoes inside the Persian Gulf will benefit from discounted prices. Kuwait and other Gulf producers have managed to raise their exports outside the Strait of Hormuz, with total daily flows now estimated at approximately 10 million bpd, comprising 9 million bpd of crude oil and the remainder consisting of fuels.

By the end of August, Qatar and Kuwait had managed to boost their crude oil exports from the Strait of Hormuz to roughly 70% of pre-war levels, following the UAE's lead in utilizing ship-to-ship transfers in the Gulf of Oman. Kuwait's crude oil exports in August were 36% below the pre-war baseline from January to February 2026, according to data from TankerTrackers.com.