Bahrain’s state-owned oil company Bapco has declared force majeure on its shipments after Iranian strikes targeted the country’s only oil refinery, disrupting operations amid the escalating conflict in the Gulf.
The move came after Iran attacked Bahrain’s sole oil refinery, forcing the company to suspend certain shipments and operations.
In a statement issued on Monday, Bapco confirmed the decision and cited the ongoing regional conflict and the direct impact of the attack on its refinery complex.
“Bapco hereby serves notice of force majeure on its group operations which have been affected by the ongoing regional conflict in the Middle East and the recent attack on its refinery complex," the company said in a statement, according to AFP.
Force majeure is typically invoked when extraordinary circumstances prevent a company from fulfilling contractual obligations, such as shipping or supply commitments.
The widening conflict has also rattled global energy markets.
According to the Associated Press, oil prices surged past $100 per barrel for the first time in more than three and a half years as the war disrupted oil production and shipping routes in the Middle East.
Brent crude, the international benchmark, rose to $107.97 per barrel, up 16.5% from its previous closing price.
Meanwhile, West Texas Intermediate, the US benchmark, was trading at about $106.22 per barrel, nearly 17 per cent higher than its previous closing level.
The conflict has heightened concerns over supply disruptions, particularly around the Strait of Hormuz, a key maritime route through which about 15 million barrels of crude oil, roughly 20 per cent of the world’s supply, are shipped daily.
Source: World News in news18.com, World Latest News, World News
