Qatar

Sheikh Khalifa bin Hamad says Qatar will ‘not hesitate’ to ensure its stability as US-Israeli war on Iran continues.

Qatar’s Interior Minister Sheikh Khalifa bin Hamad has said the situation in the Gulf country is “stable” amid Iranian drone and missile attacks launched across the Middle East in response to the US-Israeli war on Iran.

In an interview with Qatar Television on Friday, Sheikh Khalifa said the Qatari government had a plan in place to deal with the prospect of more Iranian attacks amid a regional war.

“The security situation in the country is stable, and we will not hesitate to take any measure that ensures the stability of our nation,” he said.

The interior minister said Qatar’s early warning system has been effective as authorities responded to reports of falling missile fragments at more than 600 sites across the country.

He added that Qatar has enough water to last for several months, as well as food reserves that will cover the nation’s needs for a year and a half.

Sheikh Khalifa’s remarks come as Qatar and other countries in the Gulf region have faced a barrage of Iranian attacks since the United States and Israel launched a war against Iran on February 28.

While Iran has said it is targeting US and Israeli military interests in the wider Middle East, the strikes have hit civilian infrastructure, including oil and gas facilities.

That has prompted a slowdown in regional energy production, which – coupled with Iran’s closure of the Strait of Hormuz, a key Gulf waterway – has raised concerns around the war’s effects on global economies.

Earlier this week, the United Nations Security Council passed a resolution denouncing the Iranian attacks on Gulf Cooperation Council (GCC) countries.

Sheikha Alya Ahmed bin Saif Al Thani, Qatar’s ambassador to the UN, had condemned the firings as “a clear violation of international law and the UN Charter”.

The attacks, she told reporters in New York on Wednesday, “impacts deeply the foundation of understanding upon which bilateral relations between our countries have been built”.

Gulf countries, including Qatar, Bahrain and Kuwait, have declared force majeure on gas exports following the United States-Israel war on Iran, now in its third week, and the disruptions to shipping through the Strait of Hormuz, as Tehran has retaliated across the region, targeting US assets.

QatarEnergy was among the first to halt production, shutting down gas liquefaction on March 2 and sending ripples through global energy markets. Kuwait Petroleum Corporation and Bahrain’s Bapco Energies followed days later, while India invoked emergency measures to redirect gas supplies to priority sectors.

Oil prices also soared to more $100 a barrel as war intensified and uncertainty grew over energy shipments through one of the world’s most critical maritime chokepoints.

Here’s what we know about force majeure and what Gulf countries invoking it means for global oil and gas markets.

What is force majeure?

Force majeure, from the French meaning “superior force”, is a clause in contracts that allows a party to be excused from its obligations when an event beyond its control prevents performance.

This legal move can allow a party to suspend its obligations temporarily, be released from them partially or fully, or adjust them to reflect the new circumstances.

Why are Gulf countries invoking force majeure?

Companies in Qatar, Kuwait and Bahrain have invoked it following severe disruptions to shipping through the Strait of Hormuz caused by US-Israeli military strikes against Iran that started on February 28.

Following these attacks, a commander in Iran’s Islamic Revolutionary Guard Corps (IRGC) said on March 2 that the Strait of Hormuz was closed and warned that any vessel attempting to pass through would be attacked, a statement echoed by Iran’s new supreme leader, Mojtaba Khamenei, on Thursday.

As a result, Gulf companies started invoking force majeure, in order “to avoid paying damages or other financial penalties under their contracts”, Ilias Bantekas, a professor of transnational law at Hamad bin Khalifa University in Qatar, told Al Jazeera.

“These companies are most likely unable to fulfil their obligations, for example, to deliver shipments of oil and gas to other countries, or for shippers to transport them across the Arabian Gulf,” he said.

Does war automatically qualify as force majeure?

No. For war to qualify as force majeure, it must either be covered by the contract or actually prevent one or both parties from performing their obligations.

Companies and states typically include force majeure clauses that define which events qualify, meaning that when force majeure is invoked, the parties rely on provisions they previously agreed upon.

“War can always be foreseen, but perhaps not at the level at which it is being waged right now,” Bantekas said, adding that under general contract provisions, ships carrying goods are usually expected to find another route, “even if it is more costly to them”.

“What we could never have foreseen is that the Strait of Hormuz could be closed to shipping altogether, even if Iran were attacked in the brutal way it is now. I think that, on its own, could be sufficient to constitute a force majeure event,” he said.

“However, only a court would have the authority to make a definitive determination as to whether this kind of war, under these particular circumstances, amounts to force majeure,” he added.

Will LNG and oil markets be affected?

Yes. QatarEnergy’s declaration of force majeure alone has already significantly disrupted the global LNG market, as Qatar accounts for nearly 20% of global supply.

Gas prices soared immediately following the country’s halt of gas production, and global gas markets are expected to experience shortages for weeks, if not longer.

“The lack of visibility over the likely duration of force majeure, and of the broader military conflict, is injecting extreme uncertainty into global oil, gas and LNG prices,” Seb Kennedy, global gas and LNG analyst, told Al Jazeera.

“Prices will necessarily keep rising as volumes are withheld from the market, until price pain triggers demand destruction in price-sensitive areas of the economy,” he noted.

Which other countries have invoked force majeure?

On Tuesday, India invoked force majeure to redirect gas supplies from non-priority sectors to key users after disruptions to liquefied natural gas shipments through the Strait of Hormuz, according to a government notification.

But India’s measures are a “domestic demand-management response”, Kennedy said, as its government is relocating its limited gas supplies internally “to protect critical sectors such as households, small businesses, power generation and city gas distribution”.

Kennedy said the move reflects the difficult choices facing LNG-dependent economies, where governments may prioritise households and power generation over industrial users.

This prioritisation of LNG for domestic use “highlights the tough choices facing LNG-dependent countries”, he noted.

Aside from India, Omani trading house OQ also declared force majeure to a customer in Bangladesh after the Qatari supply was halted.

How will this affect US and European markets?

US LNG exporters are likely to benefit from the disruption. Analysis by Energy Flux estimates that US LNG exporters could generate about $4bn in windfall profits in the first month of the disruption alone.

If the situation persists, “US LNG windfall profits could reach $33bn above the pre-Iran average within four months. Over eight months, that figure rises to $108bn,” says Kennedy.

These gains largely come at the expense of European consumers, Kennedy notes, as Europe is the main destination for US LNG and remains heavily reliant on those supplies to refill gas storage and ensure winter supply security.

European stock markets fell last week, while the region’s natural gas prices rose sharply again.

What does this mean for Asian markets?

Major Asian economies such as India, China and South Korea rely heavily on imported LNG.

On the other hand, Southeast Asia alone has significant fossil fuel resources, but the region still depends heavily on imported oil and gas, much of which is transported through the Strait of Hormuz.

“Wealthier buyers such as Japan and South Korea can generally outbid others to secure cargoes during periods of extreme scarcity,” Kennedy said, noting that price-sensitive importers, especially in South and Southeast Asia, tend to be “forced out of the market” whenever prices soar, “leading to demand destruction, fuel switching, or industrial curtailment”.

“In that sense, the crisis does not hit all LNG importers equally: It becomes a contest of balance sheets as much as a question of physical supply.”

Can force majeure be challenged?

If a force majeure clause is written in the contract, then it stands because the parties have consented to it.

Contrary to that, if it has not been written in the contract, then any unforeseen event would potentially be open to legal challenge, and it becomes a matter of convincing the courts that the event could never have been foreseen and that it makes obligations on one of the parties impossible to perform.

“However, in the present circumstances, the stronger parties – the ones waiting for deliveries of oil and gas elsewhere in the world – may actually be harming themselves if they refuse to accept force majeure,” Bantekas said.

“Doing business with Gulf countries could become more difficult in the future, and premiums would likely rise significantly. So, I do not think they will be taking these matters to court,” he noted.

Heavy Israeli strikes have hit Tehran, Iran, as its allies launch attacks across Gulf states, and shipping through the Strait of Hormuz has been severely disrupted, sending global oil prices soaring.

Meanwhile, political pressure is mounting in Washington as the conflict spreads across the region.

Here is what we know about what has been happening in the past 24 hours:

In Iran

Supreme leader speaks: Appointed last week following the assassination of his father, Iran’s new Supreme Leader Mojtaba Khamenei has issued his first statement, warning that attacks on Israel and US military assets and infrastructure in the Middle East will continue unless bases hosting US forces in the region are closed.

Heavy strikes on Tehran: The Israeli military has launched a new “extensive wave” of air attacks on Iran’s capital, Tehran, leaving the city covered in thick smoke on Friday morning.

Strait of Hormuz closure and surging oil prices: The Strait of Hormuz, which connects the Gulf to the Gulf of Oman, is closed, causing Brent crude oil prices to surge past $100 per barrel. The strait, which falls into the territorial waters of Iran and Oman, is the only waterway to the open sea available to oil and gas producers in the Gulf. Iran has stated that the strait is under Iranian control and US-and Israel-linked ships are banned. Other vessels must receive Iranian permission to pass.

Civilian casualties: Iran’s ambassador to the United Nations, Amir Saeid Iravani, said at least 1,348 civilians have been killed, with victims ranging in age from eight months to 88 years old.

In Gulf countries

Regional retaliation and attacks: Iran has launched waves of drones and missiles towards Gulf countries that host US military assets and troops, and has targeted oil tankers and facilities.

Bahrain: The nation has reported intercepting 114 missiles and 190 drones since the war began on February 28.

Saudi Arabia: The country intercepted 10 drones over its eastern region and later destroyed an additional 28 drones that breached its airspace.

Attacks on the UAE: The country has strongly condemned Iranian strikes on the region, and said they have hit Dubai International Airport and some hotels.

Evacuations: Australia has ordered all “non-essential” officials to leave the United Arab Emirates and Israel, and urged its citizens to evacuate the Middle East while it is still safe to do so

Qatar’s response: Qatar’s airspace is officially closed, but Qatar Airways has scheduled more than 140 special flights to help repatriate stranded residents and citizens.

Qatar has strongly rejected Israeli media claims that it intentionally paused liquefied natural gas (LNG) production to manipulate US energy prices; officials clarified that the suspension was actually forced by an Iranian drone attack.

In the US

Trump claims war moving ‘rapidly’: US President Donald Trump told reporters the war against Iran was moving “very rapidly”.

“It’s doing very well, our military is unsurpassed,” he said at the White House, not directly responding to the latest comments from Iran’s new supreme leader.

Domestic opposition: More than 250 US organisations have signed a letter calling on Congress to halt funding for the war. They argue the $11.3bn spent in the first six days of the conflict is diverting crucial funds from urgent domestic needs, such as food benefits.

No ‘need’ for ground troops in Iran: US Senator Lindsey Graham has played down the possibility of US troops being deployed to Iran, but suggested the war could continue for some time. “I don’t see this conflict ending today,” the Republican senator told reporters in Washington, DC.

In Israel

New missile wave launched at Israel: The Israeli military said early on Friday that Iran had fired a new barrage of missiles towards Israel, and instructed people in affected areas to head to shelters.

Israel strikes Basij force: Israel’s military said it had struck checkpoints set up in Tehran by the Basij force of Iran’s Revolutionary Guards as part of efforts to undermine control by the authorities.

Regime change: Israeli Prime Minister Benjamin Netanyahu said Israel can create conditions for regime change, but it is up to Iran’s people to take to the streets. He also said Israel is aiming to stop Iran from moving nuclear and ballistic projects underground.

In Lebanon, Iraq

Downed US aircraft: A US KC-135 refuelling aircraft crashed in western Iraq. While the Islamic Resistance in Iraq claimed it shot the aircraft down using air defence systems, US Central Command (CENTCOM) stated the aircraft went down in “friendly airspace” and was not the result of hostile fire.

Iraqi port closures: Iraq has shut its port operations after an Indian crew member was killed during an attack on a US-owned oil tanker in Iraqi waters.

Six French soldiers hurt: A drone attack wounded six French soldiers in Erbil, in Iraq’s autonomous Kurdish region, President Emmanuel Macron said on Thursday.

Deadly attacks in southern Lebanon: Israeli bombardments continue on southern towns and villages. A strike on the village of Arki, near Sidon, killed nine people, including five children.

Mounting death toll and mass displacement: Lebanese officials have reported that at least 687 people have been killed in Israeli attacks on Lebanon since last Monday, including 98 children. The intense bombardments have displaced an estimated 700,000 to 750,000 people from their homes.

During a cabinet meeting, Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani called for strengthening the country’s ability to withstand “hardship” as the US-Israel war on Iran rages.

The UN Security Council has passed a resolution put forward by Gulf Cooperation Council members calling on Iran to halt its attacks on Gulf countries. The measure was adopted with 13 votes in favour and two abstentions, while no member states voted against it.

Mohammed bin Abdulaziz al-Khulaifi also says Qatar and Oman cannot act as mediators while under attack.

Qatar’s minister of state for foreign affairs has called for a de-escalation in hostilities across the Middle East and urged Iran and the US to return to the negotiation table for a mediated solution.

Speaking to Al Jazeera in an exclusive interview, Mohammed bin Abdulaziz al-Khulaifi said that Iran’s attacks on its regional neighbours bring “benefit for no one”.

Iran has responded to a nearly two-week-long bombardment campaign from the United States and Israel by firing missiles and drones at its neighbours in the Gulf region and beyond, causing casualties, damaging critical infrastructure and severely disrupting the region’s energy-driven economy.

Al-Khulaifi said Qatar remains “extremely worried” about the wider range of attacks, including against civilian infrastructure.

“It’s unfortunate where we are standing right now,” the minister said.

“We also believe that there is no pathway to a sustainable and long-lasting solution other than returning to the negotiation table,” he told Al Jazeera.

Qatar condemns in the “strongest terms, the unjustified and outrageous attacks on the state of Qatar that directly impact its own sovereignty”, he said.

Doha will continue to take “every possible and legal measure to defend and practise its exercise of self-defence against this aggression”, he added.

Al-Khulaifi said the conflict demands a “global solution” to ensure that the Gulf’s energy supply chain keeps moving through the Strait of Hormuz, where global traffic has been severely disrupted by the conflict.

Ensuring freedom of movement through the waterway is “very critical,” he noted.

It is notable, Al-Khulaifi pointed out, that Iran has targeted countries such as Qatar and Oman, which had previously served as regional mediators and tried to “build bridges between Iran and the West”.

Neither country can play that role as long as the attacks continue, he said.

“We will not be able to fulfil that role under attack, and that’s something the Iranians need to understand.”

Qatari Prime Minister Mohammed bin Abdulrahman Al Thani tried to convey those points during a phone call with Tehran several days ago, the foreign minister said, when he urged Iran to cease attacks on its neighbours.

“The regional countries are not an enemy of Iran, and the Iranians are not understanding that idea,” Al-Khulaifi told Al Jazeera.

Doha also remains in contact with officials in the US and has encouraged US President Donald Trump to cease hostilities, he said.

“Our line of communication is always open with our colleagues in the United States, and we keep encouraging and supporting the pathway of peace and resolving conflicts through peaceful means.

“We really hope that the parties can find that pathway, end military operations, and return to the negotiation table.”