Force Majeure

  • Recently, amid the US-Israel & Iran conflict, several Gulf countries invoked force majeure on oil and gas exports due to war-related disruptions.
  • Force majeure is a contractual clause allowing suspension of obligations due to extraordinary, uncontrollable events.
  • The term originates from French, meaning “superior force.”
  • It applies to events like wars, natural disasters, government actions or infrastructure damage.
  • Invocation allows companies or governments to halt deliveries without legal penalties.
  • In the energy sector, it typically means stopping oil or gas shipments due to unsafe conditions.
  • Gulf countries invoked it due to attacks on infrastructure and disrupted shipping routes.
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