Macquarie has withdrawn from bidding for a stake in Kuwait’s $7 billion oil pipeline network due to the Iran war, citing uncertainty over regional volatility.

The move signals cooling investor appetite for Gulf deals, where millions of barrels are stranded after Iran’s effective blockade of the Strait of Hormuz.

Kuwait Petroleum Corporation (KPC) continues to pursue the sale, seeking non-binding offers by April 7, despite declaring force majeure and cutting production.

Other Gulf infrastructure deals, including Saudi Arabia’s district cooling and water asset sales, are moving cautiously, with investors reviewing risks amid airstrikes, economic uncertainty, and financing challenges, though capital remains available.