Kuwait announces: Crude oil and refined oil exports face “force majeure” as the blockade of the Strait of Hormuz triggers a chain reaction.

The blockade of the Strait of Hormuz continues, and the global oil supply chain is under unprecedented shock.

According to Bloomberg, Kuwait Petroleum Corporation (KPC) notified clients on Friday that it formally invoked the force majeure clause to suspend shipments of some crude oil and petroleum products, citing inability to fulfill delivery obligations to vessels unable to access the Persian Gulf. Meanwhile, prospects for the U.S.-Iran talks are once again cast in doubt—Iran's Foreign Ministry stated it has reservations about attending the second round of talks in Pakistan. As of publication, Brent crude is up nearly 4%, approaching $94 per barrel.

Citing Iranian media on the 20th, Xinhua reports that Iran’s Foreign Ministry spokesperson said there are currently no plans for a second round of talks with the United States. However, on the same day, Ibrahim Azizi, Chairman of Iran's Islamic Parliament's National Security and Foreign Policy Committee, stated that Iran has decided to continue the negotiations, but emphasized this "does not mean talks at all costs," and Iran will not accept "any approach taken by the other side"; if positive signals are received from the U.S., the Iranian delegation will go to Islamabad to participate in the talks.

Bloomberg-obtained documents show that KPC’s invocation of force majeure does not mean supply is entirely halted. However, a person familiar with the matter revealed Kuwait's oil and gas infrastructure has suffered several blows, and current output has fallen to historic lows last seen in the early 1990s; even after the conflict ends, it will take time for production to fully recover.

Kuwait Invokes Force Majeure, Output Falls to Thirty-Year Low

KPC cited the force majeure clause in its notification to clients, reasoning that the blockade of the Strait of Hormuz prevents it from completing deliveries to ships unable to enter the Persian Gulf.

Citing sources, reports say Kuwait's oil and gas infrastructure has been hit repeatedly, and output has now dropped to its lowest level since Iraq's invasion in the early 1990s. Kuwaiti officials previously said pre-war production could be restored within months of the conflict ending, but insiders note that even with eased tensions, export impacts may persist for some time.

Earlier this month, the U.S. government estimated that due to the Hormuz blockade, global oil production shutdowns in April exceeded 9 million barrels per day, with many countries in the Persian Gulf forced to reduce production of oil, natural gas, and petroleum products.

Uncertain Prospects for U.S.-Iran Talks, Pakistan Actively Mediates Maritime Blockade

Negotiations Unresolved, Iran Sends Mixed Signals: The Foreign Ministry says there are no plans for a second round of U.S.-Iran talks, while parliamentary officials say talks will continue but not "at any cost." On the U.S. side, President Trump says he is willing to meet with Iran's leaders when talks achieve a breakthrough.

According to Xinhua and U.S. media reports, U.S. President Trump said on the 20th that if there is a breakthrough in the negotiations, he is willing to meet top Iranian leaders. On the 20th, U.S. media reported Vice President Vance and the U.S. delegation would arrive in Islamabad, Pakistan “within hours.”

According to CCTV International News, and Reuters on April 20 citing senior Iranian officials, Pakistan is actively mediating to push the U.S. to lift the maritime blockade on Iran and ensure Iran’s participation in negotiations. Earlier, Pakistani security sources revealed President Trump told Pakistani Army Chief Munir by phone that he would consider Munir’s suggestions regarding the Iranian maritime blockade issue. The matter is now a barrier to the resumption of U.S.-Iran talks.

Strait of Hormuz: “Open, Then Closed Again”

The situation in the strait has swung dramatically in the past three days: Iran announced the reopening of the Strait of Hormuz last Friday but quickly closed it again due to the U.S.'s refusal to lift its blockade.

According to CCTV International News, on the evening of the 18th local time, Iran’s Islamic Revolutionary Guard Corps Navy announced that, due to U.S. violation of the ceasefire agreement and failure to lift the blockade on Iranian ships and ports, the Strait of Hormuz would be closed immediately and remain so until the U.S. blockade is lifted.

The Revolutionary Guards warned all ships in the Persian Gulf and the Gulf of Oman not to leave their berths, saying any approach to the strait "will be considered cooperation with the enemy, and violating ships will be targeted." The statement also said, "The U.S. President’s comments about the Strait of Hormuz and the Persian Gulf have no credibility whatsoever."

Just one day earlier, Iran had announced the strait would be open to merchant ships traveling along prescribed routes. Trump immediately posted his “thanks,” but then said “the maritime blockade against Iran remains in effect.”

Iran quickly accused the U.S. of “maritime piracy.” Iranian President's spokesperson Tabatabai said on the 18th: "Because the other side repeatedly violated trust and used this major concession for propaganda, the strait has been closed again."

The Hormuz blockade continues to impact global commodities supply chains. Before the conflict, about one-fifth of the world’s oil and liquefied natural gas was transported through this key chokepoint. The blockade has led to near-capacity storage tanks in the Persian Gulf region and has seriously disrupted global oil pricing mechanisms.

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