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Sign in to searchForce Majeure Invoked by Gulf Oil Companies
Context and Recent Developments: Amid escalating tensions involving the United States, Israel, and Iran, several Gulf oil companies have invoked the force majeure clause, temporarily halting or restricting oil and gas shipments. This reflects the vulnerability of global energy supply chains to geopolitical conflicts, especially in strategically sensitive regions like the Strait of Hormuz.
Concept and Legal Basis: Force majeure, meaning “superior force,” is a contractual provision that protects parties from liability when unforeseen and uncontrollable events prevent the fulfilment of obligations. Historically rooted in civil law systems, it has been widely incorporated into international commercial contracts, including energy trade agreements. Events such as wars, natural disasters, or government restrictions typically qualify, provided they are unforeseeable, external, and unavoidable.
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Gulf oil companies invoke force majeure amid US-Iran tensions, disrupting energy supply chains. Explore implications for India's energy security and global oil markets.
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