When The Pipeline Breaks: Force Majeure, Frustration, And Non-performance In Energy And Commodities Contracts

Geopolitical disruption is bringing contractual risk allocation into sharp focus across energy and commodities supply chains

The past four years have confronted contracting parties with two of the most severe geopolitical shocks of the modern era. Russia's invasion of Ukraine disrupted energy supply chains on an unprecedented scale, while Western sanctions on Russian companies, banks and assets fundamentally altered the legal and commercial landscape. 

More recently, military action involving the United States, Israel and Iran has strained shipping through the Strait of Hormuz, while strikes on Gulf energy infrastructure have disrupted production and exports. The consequences have travelled far beyond the immediate theatres of conflict: energy supplies have been interrupted, shipping routes constrained, and force majeure declarations have cascaded down supply chains. For commercial parties, legal mechanisms that might once have seemed remote have become critical.