Kuwait significantly increased its crude production in June following the US-Iran agreement, according to a source.

Kuwait's crude oil production increased significantly to 1.65 million barrels per day in June, up from 580,000 bpd in May, according to a source familiar with the situation who spoke to Reuters on Thursday. This boost comes as the OPEC member ramps up exports through the Gulf following the interim peace agreement between the U.S. and Iran.

The rise in Kuwaiti output indicates that oil shipments through the Strait of Hormuz are quickly recovering after disruptions caused by the Iran war, with previously stranded cargoes being cleared and oil producers gradually resuming their production.

Before the Iranian closure of the Strait in response to U.S. and Israeli attacks at the end of February, Kuwait's output was around 2.5 million bpd. This situation led Kuwait and other Gulf countries, such as Saudi Arabia and Iraq, to reduce their oil production by millions of barrels per day.

In the last ten days of June, daily production peaked at approximately 1.9 million bpd, according to the unnamed source.

On Thursday, oil prices extended earlier declines after the Reuters report, with crude already trading at its lowest levels since late February, just before the war began.

A representative from Kuwait Petroleum Corporation did not immediately respond to a Reuters inquiry. However, the company announced on June 18 that all force majeure notices issued during the war had been lifted, and a tender document released the next day indicated that the company was offering cargoes to buyers.

Kuwait was among the Gulf nations most adversely affected by the Iran war, primarily due to the significant slowdown in oil flows through the Strait.

In contrast to Saudi Arabia and the United Arab Emirates, which have access to alternative export routes, Kuwait relies almost entirely on the Strait of Hormuz for its crude exports, effectively isolating it from key markets like Asia during the disruptions.