Commercial Awareness Digest - 13th March 2026

The Impact of the Middle East Conflict on the Gulf States

By Esme Glover

Since the start of the conflict in the Middle East on the 28th of February, when the US and Israel launched attacks on Iran, significant repercussions have emerged within the global energy sector. These impacts are particularly pronounced for the Gulf States, including Qatar, the UAE and Saudi Arabia, who collectively account for approximately 30% of global crude oil production and 20% of liquefied natural gas (LNG) supply.

More specifically, the Strait of Hormuz, one of the world’s most busy and significant shipping routes, has been shut down by Iran as a result of the conflict, leading to a sky-rocketing of prices of oil and gas. Prior to the conflict, the Strait facilitated roughly $1.2bn worth of crude oil, refined products and LNG each day. As a result of the closure, around one-fifth of the world’s oil supply has effectively been disrupted.

The economic consequences for oil-producing states has been considerable. Saudi Arabia is estimated to have lost $4.5bn in revenue since the outbreak of the conflict. Iraq has been particularly vulnerable, given its heavy reliance on the oil sector, which accounts for roughly 90% of government revenue.

Energy prices have also reacted dramatically, with oil trading at a price that is one third higher than before the conflict. By Monday 9th March, prices of oil per barrel surged from $71 to $120.

The closure of the strait has also had social implications, with many crew members aboard ships being stranded and facing fears of being impacted by intercepted drones and missiles. It has been estimated by Captain Anam Chowdhury that approximately 20,000 sailors are stranded on ships in the Middle East.

Although the conflict is currently viewed as relatively short-term, analysts have been looking at potential impacts on the UK economy. The UK primarily relies on oil and gas imports from the United States and Norway, however due to the price of oil being set in a global market, with Brent crude being the widely-used international benchmark for oil, it still will face the financial effects of the Middle East conflict. Energy suppliers are likely to take a hit with regards to increased prices, however there will be a shielding of UK householders’ domestic gas and electricity bills if the conflict remains short-term.

Law firms who have a particular expertise in the energy sector are going to face greater volatility with regards to their work. In particular, they may see an increase in advisory work as their energy clients navigate falling revenues, disrupted supply, and halted operations following the closure of the Strait of Hormuz. A longer-term consideration will be with regards to the energy transition and diversification, as energy companies reassess the geopolitical risks associated with traditional fossil fuel supply routes.

DLA Piper Moves Away from the Swiss Verein Model

By Zuha Malik

Global law firms increasingly operate across dozens of jurisdictions, however, the way these firms structure themselves financially can significantly affect how effectively they function as international businesses. One structure that has shaped global legal expansion over the past two decades is the Swiss verein. Recent plans by DLA Piper, one of the world’s largest law firms, to move away from this model highlight growing questions about whether the structure still fits the demands of the modern legal market.

A Swiss verein is a legal structure that allows organisations to operate under a single global brand while maintaining separate financial and legal entities. In practice, law firms using this model present themselves as one global firm to clients, while each regional partnership keeps its own profit pool, liabilities and partnership structure. The model became particularly popular among large law firms during the 2000s as globalisation accelerated and firms sought rapid international expansion.

The key advantage of the verein structure is flexibility. Firms can effectively “merge” with offices in new jurisdictions without forcing partners to share profits with less profitable regions. This reduces financial risk and avoids the regulatory and tax complications that can arise when partnerships operate across multiple legal systems. As a result, many major firms - including Dentons, Norton Rose Fulbright and Hogan Lovells - adopted variations of the verein model to support aggressive global growth.

However, the structure also creates potential challenges. When profits remain separate between regions, partners may have weaker incentives to refer work across the firm’s international network. Some argue that this can make global firms operate more like loose federations of offices rather than fully integrated partnerships. As clients increasingly demand coordinated cross-border legal advice, this lack of financial integration can become a strategic limitation.

DLA Piper recently announced plans to dissolve its Swiss verein structure. The firm, which generated more than $4.2 billion in revenue in 2024 and employs around 4,800 lawyers across roughly 80 offices worldwide, will introduce a new global holding company above two partnerships: DLA Piper US and DLA Piper International. The reforms will also create a more unified governance structure, with current global co-CEOs Frank Ryan and Charles Severs continuing to lead the firm while Ryan becomes global chair. In addition, DLA Piper plans to expand a global bonus pool designed to encourage cross-border collaboration and support international hiring and investment. Partners are expected to vote on the new structure in April, with implementation planned for 1 May if approved.Despite these reforms, the firm will retain separate profit pools for its US and international partnerships. As a result, DLA Piper is strengthening global coordination without fully merging its finances.

From a commercial perspective, the shift reflects growing pressure on global law firms to compete for both cross-border work and top legal talent. As corporate clients increasingly require integrated international advice, firms must balance the benefits of global scale with the need to align incentives across offices.

While the Swiss verein model enabled rapid global expansion in the early 2000s, firms may now be reconsidering whether greater financial integration is necessary to compete in an increasingly interconnected legal market.