Force majeure: What is it and why have some Gulf countries invoked it?

"Force majeure, from the French meaning superior force, is a clause in contracts that allows a party to be excused from its obligations when an event beyond its control prevents performance. This legal move can allow a party to suspend its obligations temporarily, be released from them partially or fully, or adjust them to reflect the new circumstances."

"Companies in Qatar, Kuwait and Bahrain have invoked it following severe disruptions to shipping through the Strait of Hormuz caused by US-Israeli military strikes against Iran that started on February 28. Following these attacks, a commander in Iran's Islamic Revolutionary Guard Corps (IRGC) said on March 2 that the Strait of Hormuz was closed and warned that any vessel attempting to pass through would be attacked."

"QatarEnergy was among the first to halt production, shutting down gas liquefaction on March 2 and sending ripples through global energy markets. Kuwait Petroleum Corporation and Bahrain's Bapco Energies followed days later, while India invoked emergency measures to redirect gas supplies to priority sectors. Oil prices also soared to more $100 a barrel as war intensified and uncertainty grew over energy shipments."

Following US-Israeli military strikes against Iran beginning February 28, Gulf oil and gas producers declared force majeure on shipments due to severe disruptions in the Strait of Hormuz. QatarEnergy halted gas liquefaction on March 2, followed by Kuwait Petroleum Corporation and Bahrain's Bapco Energies. Iran's Islamic Revolutionary Guard Corps threatened to attack vessels transiting the strait, escalating regional tensions. Force majeure is a contractual clause allowing parties to suspend or modify obligations when uncontrollable events prevent performance. These declarations protect companies from financial penalties while reflecting unprecedented circumstances. Global energy markets experienced significant disruption, with oil prices surging above $100 per barrel and India implementing emergency measures to redirect gas supplies to priority sectors.

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