Situation in the Middle East

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Strait of Hormuz disruption

The Strait of Hormuz is one of the most important routes in global trade. A significant share of the world’s energy passes through it and much of the heavy equipment and specialist materials used in GCC projects.

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The impact on global sanctions

Trump administration takes steps to further ease sanctions on Russian oil as crude prices surge during Iran war.

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Beyond boilerplate

As global conflict intensifies, force majeure clauses are back in focus. This article considers how conflict and geographical disruption affect contractual performance and risk allocation.

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Force majeure hardship

The ongoing conflict in the Middle East is having direct, tangible consequences across the Gulf Cooperation Council (GCC) and the wider Middle East – regions that sit at the heart of global energy, logistics and construction supply chains.

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The Gulf conflict

In the face of yet another wave of supply chain disruptions and soaring fuel prices, our consumer sector clients are bracing themselves for the inevitable. This week, they have expressed a sense of resignation but also a readiness to tackle these challenges head-on.

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Supporting stranded travellers

The recent response from the UAE Government to assist tourists stranded following the weekend’s events has been both proactive and reassuring. However, with today’s news that more destinations are subject to FCDO advice, many travel businesses are now facing questions from customers overseas (including those holidaying in remote destinations such as the Maldives) about what support they are entitled to during unavoidable disruptions.

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Key employment and workforce considerations

Recent international events have led to disruption affecting travel, remote working arrangements and globally connected workforces. While circumstances will differ between organisations, employers may wish to consider the potential employment and HR implications for their workforce and ensure appropriate arrangements are in place to manage risk and support employees.

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Defining war

In light of the recent missile and drone strikes by Iran across Israel and several Gulf states, businesses, insurers and investors are facing heightened uncertainty around exposures.

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Managing construction risk

Recent developments affecting regional security and international transit routes are having increasingly tangible consequences for construction and infrastructure projects across the Gulf. From Qatar, we are seeing first hand how the current uncertain security environment is translating into airspace restrictions, supply chain disruption and heightened commercial uncertainty for contractors operating across the GCC.

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The Maritime security landscape

Recently, five merchant vessels are reported to have been attacked including a probable total loss of the SKYLIGHT and unconfirmed reports on the potential sinking of ATHEN NOVA; Ports have closed or have had activities suspended; and the escalation of attacks has already had a detrimental effect on supply chains and the price of oil and LNG.

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Situation in the Middle East

Latest content

Strait of Hormuz disruption

The impact on global sanctions

Beyond boilerplate

Force majeure hardship

The Gulf conflict

Supporting stranded travellers

Key employment and workforce considerations

Defining war

Managing construction risk

The Maritime security landscape

People

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Victoria Clucas

James Fox

Kirk Durrant