The conflict in West Asia has triggered a wave of inquiries regarding material adverse change (MAC) clauses in financing agreements, as companies and lenders navigate rising input costs and supply chain disruptions. Paridhi Adani, a partner at Cyril Amarchand Mangaldas, emphasized that MAC provisions are currently active instruments, as lenders are reviewing their exposure to risks. Unlike force majeure, which allows parties to pause obligations due to uncontrollable events, MAC clauses enable renegotiation or exit from agreements if a counterparty's financial condition deteriorates. Sectors such as energy, aviation, shipping, and manufacturing are under increased scrutiny due to their vulnerability to fuel costs and logistics issues. For example, a Delhi-based manufacturing firm is renegotiating its power purchase agreement due to higher costs affecting its commercial viability. While lenders are cautious, they are seeking additional disclosures and monitoring compliance more closely. Despite the heightened scrutiny, invoking MAC clauses remains legally complex, requiring serious and long-lasting impacts on businesses. The current situation reflects early-stage stress in credit markets, with lenders probing risks rather than formally invoking MAC clauses.