Kuwait’s oil sector is facing a major crisis as the war in the Gulf region has severely disrupted oil exports for several months. Shipping through the Strait of Hormuz, the country’s main export route, has been heavily affected, putting significant pressure on Kuwait’s oil-dependent economy.More than 90 percent of Kuwait’s government revenue and almost all of its export earnings come from oil. A prolonged disruption to crude exports could therefore have serious economic consequences for the country.Kuwait has limited alternatives to the Strait of Hormuz. Unlike Saudi Arabia and the United Arab Emirates, it does not have an alternative pipeline system capable of bypassing the strategic waterway. As a result, disruptions to shipping through the strait have directly affected Kuwait’s ability to export oil.Sheikh Nawaf Saud Al-Sabah, chief executive of Kuwait Petroleum Corporation (KPC), described the current situation as the biggest crisis facing Kuwait’s oil sector since Iraq’s invasion in 1990.The 1990 invasion caused extensive damage to Kuwait’s oil infrastructure, with Iraqi forces setting fire to hundreds of oil wells and destroying major facilities. While the current conflict has not caused destruction on that scale, Kuwait’s oil infrastructure has suffered damage.Within days of the outbreak of the war, KPC declared force majeure, citing its inability to meet contractual obligations. The legal provision protects companies when extraordinary events such as war or natural disasters prevent them from fulfilling contractual commitments. The declaration was withdrawn in June.Iranian attacks have also damaged water treatment plants and fuel facilities in Kuwait. In April, KPC’s headquarters was targeted in a drone attack.Before the war, Kuwait was producing slightly more than 2.6 million barrels of oil per day. The country had planned to increase production to 4 million barrels per day by 2040.KPC’s chief executive remains hopeful that oil transportation will gradually return to normal once the Strait of Hormuz reopens. Kuwait expects to restore its pre-war production levels quickly and could eventually exceed them if conditions improve.