Force majeure

Force majeure (French: "superior force") is a doctrine in contract law that excuses a party from performance when an extraordinary event beyond their control makes fulfilment impossible. Codified in commercial contracts since the nineteenth century, it covers acts of war, natural disasters, and government actions, and requires formal notification plus a causal link between the trigger and the specific obligation that cannot be met.

Since Iran closed the Strait of Hormuz in March 2026, Force majeure declarations have cascaded through global energy and shipping markets. Iraq declared Force majeure on all oilfields operated by foreign companies, unable to route exports through blocked Gulf terminals . QatarEnergy invoked the clause after Iranian strikes on Ras Laffan destroyed two LNG trains , and more than 3,000 vessels remained stranded as insurers absorbed wave after wave of notifications .

The doctrine has become a proxy indicator of market confidence in conflict duration. When Lloyd"s of London and War risk coverage underwriters invoke it, they signal that hostilities are priced as structural rather than transient. Producers and shippers who cannot invoke Force majeure face breach-of-contract exposure on top of physical losses, creating a two-tier crisis between those with legal cover and those without.