What is the core cause of the multi-billion-dollar disputes among major oil traders like PetroChina, Shell, and TotalEnergies?

The disputes stem from contracted oil shipments that were not delivered due to disruptions caused by the Iran war — particularly the near-total closure of the Strait of Hormuz — leading sellers to terminate contracts and seek damages, while buyers cited inability to secure ships or producers cut output, creating liability conflicts over force majeure and contractual obligations.

Why is the Murban crude cargo dispute between a PetroChina unit and Shell especially significant?

It centers on a 500,000-barrel Murban crude cargo tied to the ICE Futures Abu Dhabi (IFAD) contract — a key regional benchmark — and arose after Abu Dhabi National Oil Co. instructed equity partners to lift only 80% of remaining March volumes, exposing complexities in a market where cargoes are traded multiple times pre-loading and underpinning both OTC deals and derivatives.

Oil Traders Lawyer Up as Hormuz Disruptions Trigger Billions of Dollars in Disputes

Apr 29, 2026

Major oil traders including Shell and PetroChina face billions in legal disputes over undelivered cargoes caused by Hormuz disruptions, threatening market confidence and impacting profits amid ongoing supply shocks.

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