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Beyond the shock: Managing exposure and risk in the wake of conflict

The Middle East conflict disrupted 20% of global oil and LNG supply. For energy operators, the financial exposure that follows is just as dangerous as the initial shock. This paper sets out how to stay ahead of it.

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The closure of the Strait of Hormuz triggered the largest disruption to global energy flows in modern history. But the risk did not end there.

For upstream producers, refiners, petrochemical operators, and power generators, the ongoing volatility is creating a growing mismatch between declared business interruption (BI) values and actual financial exposure. If a loss event occurs during this window, the consequences can be severe.

In this paper, Marsh's energy risk specialists examine:

  • Why BI exposures are moving faster than policy renewal cycles across upstream, refining, power, and petrochemical sectors
  • How the conflict's ripple effects are being felt across Asia, Europe, and global commodity markets
  • What volatility clauses in insurance policies can and cannot protect against
  • Three immediate steps energy operators should take to protect their financial position

 "BI exposures can move faster than policy renewal cycles. They are time-dependent, market-driven, and generally non-linear."

Volatility will persist long after geopolitical stability returns. Download the paper to understand your exposure and how to manage it.

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Our people

Grace Kapoor

Grace Kapoor

IMEA Business Interruption and Emerging Risks Lead

  • United Arab Emirates

Tendi Myezwa

Tendi Myezwa

VP Business Interruption Risk Engineer

  • United Arab Emirates