The ongoing Gulf conflict may constitute a force majeure event where it directly impairs contractual performance. Geographies most exposed include the Gulf region, Israel, Iran, and Red Sea trade routes. Key affected sectors are shipping, logistics, aviation, oil & gas, petrochemicals, construction, power, and globally interconnected supply chains.

Though Indian construction businesses appear for the time being not directly impacted, we should not be complacent about it. Indian contract management professionals on either side of the table, should proactively assess indirect impacts on materials, equipment, manpower, and transportation, and ensure timely contractual notices and risk mitigation measures, even where direct project disruption is not yet evident. Should things go further south, this preparation may help reduce the pain for all parties.