Iraq declares force majeure on foreign-operated oilfields over Hormuz disruption, sources say

https://www.reuters.com/business/energy/iraq-declares-force-majeure-foreign-operated-oilfields-over-hormuz-disruption-2026-03-20/

38 Comments

  1. Excerpt

    “BAGHDAD, March 20 (Reuters) – Iraq has ​declared force ‌majeure on all oilfields ​developed ​by foreign oil ⁠companies, as ​military operations ​in the region have disrupted ​navigation ​through the Strait of ‌Hormuz, ⁠preventing most of the country’s ​crude ​exports ⁠from moving, ​oil ministry ​sources ⁠said.”

    Edit:

    “What is force majeure?
    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.”

    As per this [Al Jazeera article ](https://www.aljazeera.com/news/2026/3/13/force-majeure-what-is-it-and-why-have-some-gulf-countries-invoked-it#:~:text=Force%20majeure%2C%20from%20the%20French,beyond%20its%20control%20prevents%20performance.)

    Edit 2:

    That probably suggests the Iraqi government are infrastructurally re-appropriating oil fields (or in plain terms, ~~seizing control of foreign-run oilfield productions~~ exempting from contractual obligations) for ~~national security~~ various reasons

    Edit 3:

    Force majeure = a legal term meaning Iraq wants to be exempted from legal contractual obligations due to abnormal contexts like the current conflict for whatever reasons

    ELI5: declaring, “I can’t deliver my end of the deal because of war, etc… so don’t sue me”

  2. anonymousasu on

    I was promised a Golden Era, a country so “hot” with unlimited profit. Are you telling me the man selling NFT trading cards as him dressed as a cowboy lied? At least I get compliments on my gold Trump sneakers so not a total loss.

  3. francois_du_nord on

    Add a bunch of wildcatters to the list of those looking for a pound of flesh. Good thing King Pedo is overweight, he’s got plenty to give.

  4. So now Iran has helped another nation nationalize their oil fields? This is a domino theory I can get behind

  5. Searchlights on

    > **Force majeure** is a contractual clause freeing parties from liability due to extraordinary, unavoidable events—such as natural disasters (“acts of God”), war, or pandemics—that prevent contract performance. Originating from French civil law (meaning “superior force”), it is invoked by proving the event was unforeseeable, external, and insurmountable.

  6. Yeah, so they are taking fields being worked by other nations, and then through the seizure further restricting oil output and flow to the rest of the world. Bold move, and one that will work.

    To be perfectly clear, I don’t support Iraq, but they have played their hand quite well.

    ETA: fat fingered the country.

  7. Clean-Director-7340 on

    Fuckin a we are winning too much sir, please for the love of god, stop the winning.

  8. What about the oilfields in the north which export through the iraq-turkey pipeline?

    Just yesterday North Oil company said they will export 250 000 barrels per day initally with the new agreement between Iraq and Turkey. Other companies have shared similar sentiments.

  9. DeathFlameStroke on

    Are we unironically watching “the third way” dream of nationalized oil revive under *checks notes* the US military industrial complex and Israel????

  10. Does this mean that the oilfields in Iraq that are essentially owned and operated by the US & UK are effectively being nationalized?

  11. doctorlongghost on

    So torn between wanting to see the whole economy implode, guaranteeing a MAGA defeat in November, or seeing things somehow inexplicably work out, yet again.

  12. Reuters having a paywall is actually insane to me. I know that’s the business model for media companies these days, but they aren’t just a news site, they’re a wire service.

  13. I’m not versed in oil production, but can you just stop pumping/refining? I’d think there’s a lot more to stopping and resuming production than just flipping a switch.

  14. No-Understanding2406 on

    the part people are glossing over is what this does to contracts downstream. Iraq ships roughly 3.5 million bpd through Hormuz. the Turkey pipeline up north can handle maybe 350-400k on a good day. force majeure does not make the oil appear somewhere else, it just legally shields Iraq from breach-of-contract claims.

    the real domino is refineries that built supply chains around Iraqi crude now scrambling for alternatives. and “alternatives” in a Hormuz-closed world means what exactly? Saudi east-west pipeline? UAE Fujairah terminal? both already priced in and under serious pressure.

    this is going to be interesting in the most stressful possible sense of that word.

  15. Can I claim “force majeure” on my taxes since the US government has abandoned the social contract with the American people?

  16. handyandy314 on

    We are buggered, the average Joe who has a mortgage and need utilities, seeing them double and quadruple in the coming days

  17. Dncin_Bonobo on

    I hope all this bullshit forces the world to turn to clean energy to stop all this crap from happening in the future. It’s time for the world to give up. It’s addiction to fossil fuels.

  18. WellWellWellthennow on

    I think they mean they’re claiming their oil fields that belong to foreign developers.

    Just a guess but they probably see the US at a weakness right now being preoccupied with Iran so unlikely willing to spread the war also to Iraq at the same time. So it’s like we’re claiming your companies’ oil fields and what are you gonna do about it?

  19. It’s truly amazing how 77 million Americans fucked the entire world, of billions, so profoundly

  20. What would happen if one of the world’s largest oil suppliers were attacked? Right, they’d drag everyone else through the mud… And the US doesn’t give a damn because they supposedly have enough. The US is currently causing the entire world to be economically ruined, and what does the egotistical US president do? He blames everyone else because no one wants to help him.

  21. RandomiseUsr0 on

    We need to recognise the disgusting racist abomination of Zionism, listen to South Africa, this will be downvoted, by whom, ask that question

  22. BayareaItalGuy on

    Don’t worry about it. The American taxpayer will cover all losses and damages. Registered Republicans and MAGA supporters will be more than happy to give an extra 15-20% in taxes to cover losses.

  23. GreekGenius100 on

    Trump has single handily destroyed the oil transport in the world Evil man that will make Americans pay for his sins

  24. OrionsChainsaw on

    If only there were other sources of energy that nations could have seriously invested in to reduce demand for oil.