HOUSTON — Kuwait on Tuesday said Iran’s closure of the Strait of Hormuz amounts to an economic blockade of Gulf Arab oil producers, warning that the impact is beyond catastrophic and will trigger a domino effect across the world.
“We are outraged by this attack against us,” Shaikh Nawaf Al-Sabah, the CEO Kuwait Petroleum Corporation, told the oil industry at S&P Global’s CERAWeek energy conference in Houston.
“This is an attack not only against the Gulf, but it is an attack that is holding the world’s economy hostage,” said Al-Sabah, who delivered his remarks via video conference from Kuwait after cancelling his appearance in Houston due to the war.
Kuwait has declared a force majeure on its delivery contracts and ramped down oil production because it cannot export to the global market. KPC is only producing oil for domestic consumption right now, Al-Sabah said.
Saudi Aramco CEO Amin Nasser warned earlier this month that the Iran war would have “catastrophic consequences” for the world economy. Nasser understated the impact of the Strait’s closure, Al-Sabah said.
