Force Majeure & the Impact of Regional Conflicts on Existing Contracts

The legal framework governing contracts is founded upon the well-established principle that “the contract is the law of the parties.” However, despite its firm grounding, this principle cannot be isolated from the economic reality within which contractual relationships operate. The law recognizes that certain exceptional events may arise beyond the expectations and control of the parties, materially affecting their ability to perform their obligations. From this recognition emerged the doctrine of force majeure as a legal mechanism that balances contractual stability with the requirements of justice when extraordinary circumstances disrupt the equilibrium of the contractual relationship.

The recent war in the region has once again highlighted the practical significance of this doctrine, as its repercussions have extended beyond the military sphere to impact economic and commercial activities. The tensions witnessed in the Arabian Gulf region, together with the associated security risks affecting airspace and vital maritime routes—most notably the Strait of Hormuz—have directly impacted trade flows, transportation, and the smooth functioning of international supply chains. In certain instances, this has resulted in increased shipping and insurance costs, delays in the delivery of equipment and essential materials, and even prompted some international companies to reassess the risks of operating within the region.

The effects of these developments are particularly evident in major construction contracts, which by their nature involve complex obligations, precise timelines, and reliance on an extensive network of suppliers and subcontractors. In such projects, any significant disruption in transportation or supply chains may lead to delays in execution phases or the late delivery of materials and equipment essential to the project. Where such disruption arises from exceptional circumstances beyond the control of the parties, the question arises as to whether it constitutes a case of force majeure that justifies the suspension of obligations or exempts the affected party from contractual liability.

Legal doctrine has consistently established that force majeure is realized when an exceptional, unforeseeable event occurs, beyond the control of the parties, which cannot be averted, and which renders the performance of the obligation impossible. Wars and armed conflicts are among the most prominent examples of such events, particularly when they lead to the disruption of transportation or the unavailability of essential materials required for the performance of the contract.

Nevertheless, reliance on force majeure in contractual relationships does not arise automatically. It requires proof that the exceptional event has had a direct impact on the performance of the obligation. If war-related circumstances lead to the impossibility of importing essential equipment for a project, disrupt the transportation routes upon which a contractor depends, or impose restrictions that hinder the continuation of work, such circumstances may collectively constitute a force majeure event. This may justify extending the period for performance, suspending certain contractual obligations, or, in some cases, terminating the contract.

In light of the rapid and ongoing transformations in the region, it is evident that the doctrine of force majeure is no longer merely a traditional theoretical concept, but has become a necessary practical tool for regulating contractual relationships. Contracts, regardless of their precision, remain inherently linked to the circumstances surrounding their performance. This underscores the importance of prudent risk assessment and the careful drafting of force majeure clauses with legal awareness, enabling the restoration of balance in the contractual relationship when exceptional circumstances impose themselves upon the economic reality.

Lawyer Amal Zuhair – Ebtisam Alsabbagh Attorneys
6 May 2026