The chief financial officers of some of the world’s top commodity trading houses warned that the protracted closure of the Strait of Hormuz may lead to a wave of disputes stemming from lost supply.
Several oil and gas producing giants in the Middle East declared force majeure since the war began, a legal clause allowing them to not honor contractual commitments. Hundreds of millions of barrels of cargoes have gone undelivered, refineries have been forced to scale back output, and there’s been chaos across shipping markets.
“We expect a lot of financial disputes and a lot of force majeure,” Mercuria ...