Kuwait mulls oil storage plans to allay Iran threat

KUWAIT (Reuters) – Rising international tension between Iran and the West has prompted OPEC-member Kuwait to consider long-term plans to increase storage of its oil abroad, oil industry sources and diplomats said.

The United States says it wants a diplomatic solution to its dispute over Iran’s nuclear programme but has not ruled out military action if that fails.


Tehran has threatened to impose controls on shipping through the Strait of Hormuz if attacked.

Kuwait, the world’s seventh-largest oil exporter, ships all of its crude exports, totalling around 1.7 million barrels per day, through the strait. The Gulf Arab state has no alternative export route.

Kuwait is assessing plans to set up storage facilities in Asian countries such as China and Vietnam where it is building refineries, industry and diplomatic sources said.

Reuters