Iraq Imposes Force Majeure on All Foreign-Run Oil Fields
On March 21, sources within the oil sector revealed that Iraq has activated force majeure across all oil fields operated by international companies. The decision follows escalating military tensions in the Persian Gulf, severely disrupting maritime traffic through the Strait of Hormuz.
As a critical global oil transit route, the strait’s closure has blocked tankers from departing southern Iraqi ports, leaving millions of barrels stranded daily.
Global Energy Supply Chain Under Pressure
- Major export terminals in Basra have halted loading operations
- International operators suspend production and staff rotations
- Shipping insurance premiums surge, rerouting vessels around Africa
The shutdown threatens Iraq’s economy, which relies on oil for over 90% of state revenue. Prolonged disruption could trigger fiscal instability and reduce OPEC+ output quotas compliance.
While no official statement has been issued, energy forecasters have begun revising down Iraq’s Q2 production outlook. Markets now watch regional diplomacy and potential de-escalation efforts closely.