<span>Story: Iraq has declared force majeure on all fields developed by foreign oil companies, according to three energy officials with direct knowledge of the decision.</span><span>This comes after military operations in the region disrupted navigation in the Strait of Hormuz, halting most of the country’s crude oil exports.</span><span>About 20% of the world’s oil and liquefied natural gas supplies pass through the strait.</span><span>“Force majeure” is used to describe an event beyond a company’s control, such as a natural disaster, which usually relieves the company of its contractual obligations without penalty.</span><span>A letter dated March 17 seen by Reuters showed that Iraq’s oil ministry ordered a complete shutdown of production in the affected areas and that the measure would not result in any compensation under the terms of the contract.</span><span>International oil prices hit their highest level in nearly four years on Friday as the three-week war between the United States, Israel and Iran escalates.</span><span>The ministry said it would review the situation regularly and invite businesses to engage in emergency negotiations to agree on basic operations, costs and staffing in the event of force majeure.</span><span>Falling production and exports will put pressure on Iraq’s already fragile finances, as the country relies on crude oil sales for nearly all public spending and more than 90% of revenue.</span>
