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State-owned Kuwait Petroleum Corporation (KPC) has started reducing crude oil production and refining throughput, according to a statement.

It said that it declared force majeure “in light of the ongoing aggression by Iran against the State of Kuwait, including Iranian threats against safe passage of ships through the Strait of Hormuz”.

Force majeure, a French term meaning “superior force”, is a clause included in many international commercial contracts. It allows companies to suspend contractual obligations when extraordinary events happen that are beyond their control.

KPC said the reduction in production and refining is precautionary and will be reviewed as the situation develops.

It said: “The corporation remains fully prepared to restore production levels once conditions allow. KPC stresses that all domestic market needs remain fully secured, in accordance with established plans.”

The company also stated that it remains committed to prioritising employee safety, safeguarding Kuwait's national assets and promoting stability within global energy markets.

Amid growing concerns about disruption to oil production and exports due to the Iran war, crude prices passed $100 a barrel for the first time in nearly four years.

Brent crude, the international benchmark, jumped 26.3% to $117.08 a barrel on 7 March, the first time market prices have soared above the $100 threshold since Russia’s invasion of Ukraine.