Egypt turns to Libya for oil imports as Hormuz disruption halts Kuwaiti supply

Egypt plans to import at least 1mn barrels of crude oil per month from Libya to offset a halt in Kuwaiti supplies caused by the effective closure of the Strait of Hormuz, Asharq Business reported on March 27, citing government sources. 

Under a request submitted by the Egyptian General Petroleum Corporation to Libya’s state-owned energy utility the National Oil Corporation, shipments are expected to reach around 1.2mn barrels monthly.

The move comes as Egypt faces rising energy costs amid the ongoing US-Israel conflict with Iran, now entering its fifth week, which has disrupted regional oil flows. Egyptian refineries partially rely on Kuwaiti crude, importing between 1mn and 2mn barrels per month, in addition to around 1mn barrels from Saudi Aramco.

Following the outbreak of the war against Iran on February 28, Gulf producers have reduced output as storage facilities filled rapidly and shipping through the Strait of Hormuz slowed. Kuwait has cut production and declared force majeure on crude exports.

Force majeure clauses in commercial contracts allow companies to suspend deliveries or adjust schedules without penalties in the event of extraordinary circumstances beyond their control.

Egypt consumes around 12mn tonnes of diesel and 6.7mn tonnes of petrol annually and remains a net importer of natural gas. The Egyptian government has recently introduced energy-saving measures, including earlier closing hours for cafes and shops, to manage consumption amid supply pressures.

Following the US-Israeli strikes against Iran, the Egyptian government raised fuel and public transport prices by up to 30% to offset a doubled monthly energy bill, while expanding social protection packages for low-income groups to absorb the resulting inflation. The Egyptian Ministry of Petroleum and Mineral Resources said earlier it was targeting savings of around EGP 38bn ($731mn) from the recent increase in fuel prices during the remaining four months of FY 2025/26,