Many international contracts incorporate the ICC Force Majeure and Hardship Clause (2020 / 2023), either by reference or by adaptation or contain a force majeure clause which is drafted on the basis of the ICC Clause.

In the context of Iran war and the force majeure declarations by Iraq and Qatar on oil‑supply contracts with EU countries, understanding this clause is critical for contractors and employers alike.

The ICC Clause defines force majeure through four conditions:

1. The event is beyond the parties’ control;
2. It was not reasonably foreseeable at the time of contracting;
3. It is not reasonably avoidable or overcome;
4. It is not attributable to the other party.

The clause also lists examples such as war, hostilities, natural catastrophes, government actions, and similar events, which are presumed force majeure if they genuinely prevent or hinder performance.

Force majeure is substantially different from hardship.nAccording to the general principles laid down by the ICC :

• Force majeure covers extraordinary events beyond a party’s control (such as war, natural disasters, government prohibitions) that prevent performance. Under ICC principle, the consequences are typically suspension of the obligations affected, and, if the event continues for an agreed period, termination of the contract with no liability from the affected party.
• Hardship applies, instead where performance is still technically possible but has become excessively onerous because of an unforeseen event (for example, a major disruption of supply or extreme cost increase). Excessively onerous does not that the performance has become simply more expensive. Under ICC approach, hardship triggers renegotiation; if renegotiation fails, a court or tribunal may adapt or terminate the contract.

It is worth noting that:

• the party invoking successfully the force majeure event is relieved from its duty to perform and from any liability from the time the impediment causes inability to perform, provided that the notice thereof is given without delay. If notice is not given without delay, the relief is effective from the time at which notice thereof reaches the other party; while
• the party invoking the hardship event is not entitled to suspend the performance just because it sent the request to renegotiate the contract.

Iraq and Qatar oil‑supply contracts with the EU

Recent reports indicate that Iraq and Qatar have declared force majeure on certain oil‑supply contracts with European buyers.

Under an ICC‑style clause:

• The declaration is justified if the events genuinely prevent or hinder the ability to load, transport, or discharge crude oil.
• If the exporters can still deliver via alternative routes (e.g., longer maritime lanes or different ports), the claim may be challenged as going beyond true force majeure and touching instead on hardship.

These oil‑supply cases mirror issues that arise in other contracts:

• If a Saudi‑law‑linked construction contractor cannot receive critical equipment from a supplier in a country affected by Iran‑related sanctions or port closures, and no alternative route or supplier exists within a reasonable timeframe, the contractor may rely on the ICC Clause to excuse non‑performance.

How Saudi law interacts with the ICC Clause

Under Saudi‑law‑governed contracts, the ICC Clause is treated as a contractual allocation of risk, not a substitute for mandatory CTL rules.

• Saudi courts will generally respect the ICC wording on notice, burden of proof, and consequences.
• However, they may override any clause that attempts to waive core protections, such as Article 97 CTL on hardship or Article 173 CTL on liability for harmful acts.

Tips for the affected party

• Check whether your contract incorporates the ICC Clause and whether it is incorporated in full or modified.
• Issue a written notice within the prescribed period (typically 14–30 days), clearly referencing the Iran‑linked event, its effect on the critical path, and any mitigation efforts.
• Collect evidence such as government orders, customs or shipping notices, and price‑index data to show that the event was genuine, external, and not attributable to your own choices.

In the current environment, using the ICC Clause correctly can give you a clear, internationally recognised framework to protect your rights when external shocks—such as sanctions or border closures—hit your project.