Kuwait Cuts Oil Output As Qatar Warns Hormuz Chokepoint Chaos Risks Global Shock

Kuwait began cutting crude oil output after storage tank farms began filling up, as crude could no longer be loaded onto very large crude carriers and transported through the Strait of Hormuz, according to The Wall Street Journal.

Sources say the OPEC founding member is now weighing broader reductions in crude production and refining, potentially limiting operations to only domestic demand, with a decision expected within days.

UBS analyst Nana Antiedu noted that Brent crude futures climbed to $91/bbl after WSJ released the report.

WSJ noted:

Data provider Kpler said it has seen indications that Kuwait has started to cut production, adding that the country would have to cut more output in the coming days, as storage would otherwise fill up in around 12 days.

Shutting in an oil well risks long-term damage to reservoir pressure and incurs high restart costs, usually making it a measure of last resort. Restarting production can take days or even weeks depending on the reservoir.

“Storage is limited in the Middle East, and the only fix to avoid tanks running over is to curb production,” UBS commodity analyst Giovanni Staunovo said. “The longer the strait stays closed, the more barrels of crude and refined products will be missing, leading to higher prices.”

Earlier in the day, Qatar’s energy minister, Saad al-Kaabi, told the FT that “Everybody who has not called for force majeure we expect will do so in the next few days if this continues. All exporters in the Gulf region will have to call a force majeure.”

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Plot Twist: Kuwaiti Fighter Jet Shot Down All Three US F-15s

In a remarkable feat, a single Kuwaiti F/A-18 Super Hornet took out all three of the American F-15s that were shot down over Kuwait on Sunday, according to sources who spoke to the Wall Street Journal. The new narrative replaces the initial reports that attributed the shootdowns to a Kuwaiti Patriot missile battery. 

Launching just three missiles, a single pilot went three-for-three, destroying the trio of F-15E Strike Eagles, which were purchased for something like a combined $93 million in 1998 dollars, or $187 million today. New F-15EX models go for about $100 million apiece. All six crew members parachuted safely in Kuwaiti territory, though one of them had an unsettling reception from a pipe-wielding Kuwaiti who may have mistaken him for an Iranian pilot.

The incident happened shortly after an Iranian drone hit a US tactical operations center in Kuwait, killing six US Army Reserve soldiers, say the Journal’s sources, who are familiar with the initial reports on the mishap. With many other drones having swarmed the area, when an amped-up Kuwaiti pilot saw jets on his radar, he started blasting.

The airspace in the theater of operations is a madhouse, packed with fighter jets, bombers, reconnaissance craft, fuel tankers, drones, cruise missiles, HIMARS rockets, interceptor missiles, and incoming Iranian missiles and drones. “It’s a busy, busy air environment, and in times of stress, tension, crisis, and, certainly in this case, conflict, even more so,” retired US Air Force B-52 bomber pilot Mark Gunzinger told the Journal.

Retired Army Lt. Gen. Dan Karbler, who led the Army’s Space and Missile Defense Command provided additional perspective on these types of incidents and what investigators will look at: 

A fratricide incident like the one in Kuwait usually happens because of several breakdowns in communication or failures in equipment, Karbler said. Investigators will be looking to see if the aircraft friend-or-foe transponders, which are supposed to broadcast the information about a plane electronically, were working properly. Other factors are whether the Kuwaitis knew the planned flight paths of the American jets, whether the aircraft themselves were flying the correct routes and whether Kuwait was able to talk to the F-15s, either electronically or by voice…

“It’s all the more complicated when you have different air defense systems operating on different frequencies that aren’t integrated, and some of those systems are actively trying to counter threats such as drones,” he said.

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Three US F-15 Fighter Jets Shot Down in Kuwait

Three U.S. Air Force F-15E Strike Eagle fighter jets crashed in Kuwait after being struck with friendly fire on Sunday.

In a press release, U.S. CENTCOM stated, “At 11:03 p.m. ET, March 1, three U.S. F-15E Strike Eagles flying in support of Operation Epic Fury went down over Kuwait due to an apparent friendly fire incident.”

U.S. CENTCOM added, “The cause of the incident is under investigation.”

Videos of the incident show one of the F-15Es on fire and circling the air as it was free-falling before eventually crashing into the ground.

Per U.S. CENTCOM:

At 11:03 p.m. ET, March 1, three U.S. F-15E Strike Eagles flying in support of Operation Epic Fury went down over Kuwait due to an apparent friendly fire incident.

During active combat—that included attacks from Iranian aircraft, ballistic missiles, and drones — the U.S. Air Force fighter jets were mistakenly shot down by Kuwaiti air defenses.

All six aircrew ejected safely, have been safely recovered, and are in stable condition. Kuwait has acknowledged this incident, and we are grateful for the efforts of the Kuwaiti defense forces and their support in this ongoing operation.

The cause of the incident is under investigation. Additional information will be released as it becomes available.

CNN reported a bystander could be heard in one of the videos of the jet falling, saying, “The American aircraft was shot down by their own missile. We came here thinking it was an Iranian jet. It turned out to be American. Come on, guys, get in the car. Let’s go.

The aircraft’s pilot appeared to eject before impact and safely landed.

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Kuwait to De-Bank People Who Do Not Get Fingerprinted

Kuwait’s Ministry of Interior announced Wednesday that all citizens and expatriates must book a biometric fingerprinting appointment before December 31, 2024 or face being blocked from using their bank accounts or access government services.

“A biometric fingerprinting appointment must be booked before the specified deadline via the ‘Meta’ platform or the ‘Sahl’ app to avoid the suspension of governmental and banking transactions,” the government announcement said in a social media post Wednesday.

The December warning was not the first one given by the Kuwaiti government, back in September they issued a similar announcement, stating those who did not submit to fingerprinting were to be de-banked by September 30, but even that date was an extension to the measure, according to Times Kuwait in September.

At that time it was only Kuwaiti citizens that had the September 30 deadline, while expatriates had until December 30. Now, based on Wednesday’s announcement, it appears as though both groups have until December 31.

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Kuwait Warns Foreign Residents of Upcoming Deadline for Compulsory Biometric Registration

Kuwaiti authorities have called on foreign residents in the country to ensure that they complete an ongoing compulsory biometric registration exercise before the government-prescribed deadline at the end of this year.

The deadline for Kuwaiti citizens to comply with the requirement elapsed in September, but aliens have until December 31 to do so.

Col. Thamer Dakhin Al-Mutairi, an official from the Personnel Identification Department, is referenced by Arab Times as saying that all those who do not meet the December deadline will have their transactions disrupted.

Already, the government says citizens who failed to meet the September deadline have a block on some of their transactions such as banking services, although they still have a chance to catch up.

The government indicates that so far, slightly over three million people are already done with the process, while over 754,000 others are yet to do so.

Al-Mutairi has also reminded residents of the points where registration takes place. He says it is safer to book appointments because all those who show up without an appointment may not be attended to by identification personnel.

Kuwait mandated a compulsory collection of fingerprint biometrics from citizens and residents in May last year, saying it is part of efforts to bolster the country’s national security architecture.

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