Shafaq News- Baghdad

Iraq has declared force majeure across its oil sector, citing disruption linked to the ongoing regional conflict, according to a document issued by the Iraqi Ministry of Oil earlier this month.

The decision followed a ruling by a government crisis cell chaired by Oil Minister Hayan Abdul Ghani, with authorities notifying operators in Iraq’s licensing rounds to implement the measure.

Force majeure allows Iraq to suspend contractual obligations, including production, exports, and payments, without cancelling agreements or imposing penalties on companies unable to meet output targets. Financial dues may also be deferred or rescheduled under the measure.

The move comes as regional tensions disrupt energy infrastructure and supply routes, increasing operational uncertainty across the sector.

Oil prices reacted to the announcement, rising by $4 to $113 per barrel, according to market data.

Other Gulf countries have taken similar steps following the closure of the Strait of Hormuz by Iran at the outset of the US-Israeli campaign.