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Hormuz closure triggers surge in oil trading disputes, CFOs warn

Chief financial officers at major commodity trading firms have warned that the prolonged closure of the Strait of Hormuz is likely to spark a wave of legal disputes, as disrupted energy flows lead to widespread contract breaches. With the strait - normally responsible for around one-fifth of global oil and LNG shipments - effectively shut to most shipping, producers have declared force majeure, leaving hundreds of millions of barrels undelivered and forcing refineries to cut output. Executives from firms including Mercuria, Vitol, and Trafigura say the situation is creating significant legal, operational, and market risks, with expectations of numerous claims and disputes over unfulfilled contracts likely to impact profits.

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