Key takeaways

  • The Gulf conflict is placing stress upon energy assets and the logistics and insurance infrastructure upon which energy supply chains depend
  • The Strait of Hormuz is a structural choke point carrying approximately 20-25% of global oil and LNG supplies in 2025
  • Near-term consequences include operational/logistical challenges, increased price volatility, restrictive war risk insurance terms, enhanced operational costs, and an acceleration of issues arising from non-performance of agreements

The escalating conflict involving U.S.-Israeli military action against Iran and Iranian retaliation across the Gulf region has affected few markets more dramatically than global energy. This paper comments on and seeks to summarise some of the resulting legal challenges and to provide a framework for identifying and engaging with them.