Kuwait Petroleum Corporation just threw cold water on the market’s optimism. The state oil company expects it will take 10 to 12 weeks to fully restore production even after the Strait of Hormuz reopens, a timeline that’s significantly longer than many traders had been pricing in.
Speaking at the S&P Global Energy Middle East Petroleum and Gas Conference on June 3, KPC’s managing director for international marketing, Shaikh Khaled Ahmad Al-Sabah, laid out a two-phase recovery. The first phase, covering roughly 70% of normal production, would take six to eight weeks. The remaining 30% would need about another month on top of that.
A recovery slower than Wall Street wants
Kuwait exported zero barrels of crude oil in April 2026. That’s the first time that’s happened since 1991, when Iraqi forces set Kuwaiti oil wells on fire during the Gulf War. The company declared force majeure on shipments starting in March 2026 due to the Hormuz blockade, essentially a legal notice telling buyers: we physically cannot deliver what we promised.
Roughly 20% of global oil flows have been affected by the ongoing regional tensions stemming from the US-Iran conflict.
