Australia’s Macquarie Group has withdrawn from a planned bid for a stake in Kuwait’s oil pipeline network, a deal valued at approximately $7 billion, according to sources familiar with the matter. As reported by Reuters, the Australian firm’s exit comes as heightened geopolitical tensions continue to weigh on investor sentiment across the Gulf region.

The company informed Kuwait Petroleum Corporation (KPC) of its decision to exit the process, citing uncertainty stemming from the ongoing Iran war and its impact on regional stability.

The development highlights growing caution among international investors as the conflict disrupts energy markets, particularly following the effective closure of the Strait of Hormuz. The vital corridor typically handles around 20% of global oil shipments, and its disruption has resulted in significant volumes of crude being stranded.

Kuwait remains heavily exposed to the situation, as it relies entirely on the strait as its sole export route for crude oil.

Despite current challenges, sources indicated that the sale process remains ongoing. Advisers are continuing to engage with potential investors, although concerns related to asset valuation and execution risks have intensified amid heightened market volatility.

KPC had launched the process shortly before Iranian missile strikes targeted Gulf cities late last month. While the company has since declared force majeure and adjusted production levels, marketing efforts for the asset are continuing, with non-binding offers expected by April 7, sources added.