03/03/2026
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03/03/2026
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KUWAIT CITY, March 3: Two Kuwaiti oil analysts said Tuesday that global oil prices surged by seven percent in Monday’s trading, driven by military developments in the Middle East and US-Israeli strikes on Iran, as well as Iran’s attacks on vital and civilian facilities in Kuwait and other countries in the region. They told KUNA separately that the Strait of Hormuz, through which around 20 percent of global crude supplies pass, is effectively “closed,” warning that any prolonged disruption could trigger a major crisis in global supply chains.
Global markets closed higher on Monday, with Brent crude futures rising USD 4.87 to USD 77.74 per barrel, while US West Texas Intermediate gained USD 4.24 to reach USD 71.26 per barrel. Oil and energy expert Dr. Mubarak Al- Hajeri said any actual increase in oil supplies would be a significant development under current conditions, helping stabilize markets and boost investor confidence. He stressed that OPEC+ is closely monitoring developments and remains pivotal in maintaining market balance. Al-Hajeri noted that fast-moving geopolitical and logistical factors require highlevel coordination among producers, adding that corrective measures aim primarily to prevent sharp volatility and ensure uninterrupted supplies, affirming that OPEC, in coordination with partners, stands ready to act if global supply chains are disrupted.
For his part, Chairman of the Kuwaiti Business Council in Dubai, Dr. Firas Al-Salem, said the reported closure of the Strait of Hormuz by Iran’s Islamic Revolutionary Guard Corps and uncertainty surrounding US-Iran escalation have made crude and petroleum exports “extremely difficult.” Al-Salem said China would be among the hardest hit, importing about 4.6 million barrels per day (bpd) from Gulf states and Iran out of total daily consumption of 15 million bpd, followed by India at 2.1 million bpd from the Gulf.
Other Asian countries - including South Korea, Japan, Indonesia, Malaysia and Singapore - import nearly six million bpd via the Strait. He added that Gulf exports would face significant challenges, particularly downstream petroleum products such as agricultural fertilizers, petrochemicals and chemicals, of which Gulf states are the largest exporters among Arab countries. This would also be reflected in global price levels for these supplies, in addition to higher insurance costs for oil and gas tankers following attacks on some vessels by Iran’s Islamic Revolutionary Guard Corps in the Gulf of Oman. Al-Salem noted that a halt in Gulf crude flows would disrupt global refiners, especially in Asia, which maintain long-term contracts with major producers such as Saudi Arabia, Kuwait and United Arab Emirates.
Switching to different types of crude oil would require technical adjustments at refineries, which could lower their operating capacity and worsen disruptions in global oil supplies. He pointed out that the Gulf countries have historically been reliable producers, with the flexibility to increase production during global shortages. Targeting Gulf oil and gas infrastructure could further disrupt exports, citing the impact on gas markets following attacks on facilities in Ras Laffan Industrial City, which contributed to a sharp spike in UK gas prices after Qatar halted exports. (KUNA)
