Bapco Energies, Bahrain’s state-owned energy company, announced on March 9 that it has declared force majeure across its group operations following an Iranian attack on its Sitra refinery complex.
Force majeure refers to an unforeseen event beyond a party’s control—such as war, natural disaster, or government action—that prevents the fulfillment of contractual obligations.
The Sitra refinery, located on Bahrain’s island of Sitra, is the country’s largest refinery, according to trade publication Offshore Technology.
Bahrain’s Ministry of Interior confirmed that a fire triggered by the attack had been contained. In a March 9 statement posted on X, the ministry said a “fire that broke out in a facility in the Ma’ameer area, as a result of Iranian aggression, has been brought under control.” Authorities reported no injuries or fatalities.
Bahrain also accused Iran of striking a desalination plant on Sunday. Desalination facilities are critical infrastructure in desert regions, supplying potable water to millions of residents by removing salt and minerals from seawater for domestic, agricultural, and industrial use.
The escalating conflict has rattled global energy markets. Oil prices surged by roughly 25 percent on Monday, reaching their highest levels since mid-2022. Brent crude futures climbed to $119.50 per barrel, while U.S. West Texas Intermediate (WTI) rose to $119.48.
U.S. Energy Secretary Chris Wright said efforts were underway to maintain energy flows through the Strait of Hormuz. “The plan is to get oil and natural gas, and fertilizer, and all of the products from the Gulf flowing through the straits,” Wright told Fox News on Sunday.
In a March 8 post on X shared by the White House’s Rapid Response 47 account, Wright added that “one large tanker has already gone through the straits with no issues at all… energy will flow soon.”
U.S. President Donald Trump also addressed the price surge, stating in a Sunday evening post on Truth Social that higher oil prices are a temporary consequence of addressing regional security threats.
“Short-term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A., and world safety and peace,” Trump wrote. “Only fools would think differently!”
The conflict has effectively blocked the Strait of Hormuz, the world’s most critical oil transit route, through which roughly 20 percent of global oil and liquefied natural gas (LNG) supply flows.
The disruption has triggered a wave of force majeure declarations across Gulf energy producers.
On March 7, Kuwait Petroleum Corporation (KPC) said it had reduced crude oil production and refining throughput due to “ongoing aggression by the Islamic Republic of Iran against the State of Kuwait.”
The national oil company did not specify the scale of the reduction but described the move as precautionary.
“KPC emphasizes that this adjustment is strictly precautionary and will be reviewed as the situation develops,” the company said in a March 7 statement posted on X. “All domestic market needs remain fully secured in accordance with established plans.”
Meanwhile, QatarEnergy—the world’s largest single producer of liquefied natural gas—announced on March 4 that it had declared force majeure, citing the escalating conflict with Iran. If the disruption affects all 14 of its LNG production trains, it could impact nearly 20 percent of global LNG supply.
Qatar’s Energy Minister Saad Al-Kaabi warned that prolonged disruption could have severe global economic consequences.
Speaking to the Financial Times on March 6, Al-Kaabi said oil prices could surge to $150 per barrel within two to three weeks if tankers and commercial vessels are unable to transit the Strait of Hormuz.
“Everybody that has not called for force majeure we expect will do so in the next few days that this continues,” Al-Kaabi said.
“All exporters in the Gulf region will have to call force majeure. If they don’t, they are at some point going to pay the liability for that legally—and that’s their choice.”
