The ongoing conflict in the Middle East has severely disrupted global energy supply chains and commercial shipping through the Strait of Hormuz, a vital artery for international trade through which approximately 20% of the world’s oil and 19% of liquefied natural gas passes. Iranian attacks on oil terminals and cargo vessels transiting the Strait, coupled with threats by Iran to halt oil exports from the Gulf while US-Israeli attacks continue, have sent shockwaves through global energy markets.
The question then arises: If you have delivery obligations but can no longer fulfil them due to the ongoing shipping disruptions, can these obligations be suspended or extinguished?
In this update, we examine the key legal considerations that may arise where performance is disrupted by geopolitical conflict, including when parties may invoke force majeure clauses and/or the common law doctrine of frustration to excuse non-performance under a contract, and outline some important steps that you can take.
If you would like information or assistance on the above or any other area of law, you may wish to contact the Partner at WongPartnership whom you normally work with or any of the following:
KOH Swee Yen, Senior Counsel
Head – International Arbitration
Partner – Commercial & Corporate Disputes and Shipping, International Trade & Commodities Disputes
d +65 6416 6876
e sweeyen.koh@wongpartnership.com
Click here to view Swee Yen’s CV.
Professor TAN Cheng Han, Senior Counsel
Senior Consultant
d +65 6416 8004
e chenghan.tan@wongpartnership.com
Click here to view Cheng Han’s CV.
Tay Peng Cheng
Head – Energy, Projects & Construction
Partner – International Arbitration and Shipping, International Trade & Commodities Disputes
d +65 6416 8121
e pengcheng.tay@wongpartnership.com
Click here to view Peng Cheng's CV.
Melanie HO
Head – Professional and Enterprise Disputes
Partner – International Arbitration and Shipping, International Trade & Commodities Disputes
d +65 6416 8127
e melanie.ho@wongpartnership.com
Click here to view Melanie’s CV.
Lesley TAN
Partner – Energy, Projects & Construction
Partner – International Arbitration and Shipping, International Trade & Commodities Disputes
d +65 6416 8111
e lesley.tan@wongpartnership.com
Click here to view Lesley’s CV.
Alessa PANG
Partner – International Arbitration, Commercial & Corporate Disputes and Shipping, International Trade & Commodities Disputes
d +65 6416 8107
e alessa.pang@wongpartnership.com
Click here to view Alessa’s CV.
LIN Chunlong
Partner – International Arbitration, Commercial & Corporate Disputes and Shipping, International Trade & Commodities Disputes
d +65 6416 8119
e chunlong.lin@wongpartnership.com
Click here to view Chunlong’s CV.
Daniel GAW
Partner – International Arbitration, Commercial & Corporate Disputes and Shipping, International Trade & Commodities Disputes
d +65 6416 6863
e daniel.gaw@wongpartnership.com
Click here to view Daniel’s CV.
Charles TIAN
Partner – International Arbitration, Commercial & Corporate Disputes and Shipping, International Trade & Commodities Disputes
d +65 6517 8717
e xiaoming.tian@wongpartnership.com
Click here to view Charles’ CV.