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

Iraq has declared force majeure on all oilfields developed by foreign oil companies after military operations in the region disrupted navigation through the Strait of Hormuz, halting most of the country's crude exports, three energy officials with direct knowledge of the decisionsaid.



Navigation through the Strait of Hormuz — a chokepoint for around 20% of global oil and liquefied natural gas supplies — has been severely affected by unprecedented military activity, the oil ministry said in a letter dated March 17 and seen by Reuters. Most Iraqi crude exports transit the Strait, and the disruptions have caused storage capacity to reach its limits, the letter said.



International oil prices settled at their highest level in nearly four years on Friday, as the three-week-old U.S.-Israeli war with Iran escalated.