diff --git a/pyproject.toml b/pyproject.toml
index 5081712..158a0ed 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -42,11 +42,13 @@ ignore = [
     "D205", 
     "D212",
     "D402",
+    "EM102",
     "G004",
     "PLR0912",
     "PLR0913", 
     "PLR0915",
     "S321",
+    "TRY003"
 ]
 
 # allow autofix behavior for specified rules
diff --git a/tests/sources/test_transformer.py b/tests/sources/test_transformer.py
index d67fcd0..bec9cbb 100644
--- a/tests/sources/test_transformer.py
+++ b/tests/sources/test_transformer.py
@@ -23,6 +23,51 @@ def test_load_exclusion_list(source_transformer, mock_s3_exclusion_list):
     ]
 
 
+def test_next_iter_sets_action_skip_when_record_is_excluded(tmp_path):
+    class ExcludingTransformer(Transformer):
+        @classmethod
+        def parse_source_file(cls, _source_file: str):
+            return iter(())
+
+        @classmethod
+        def get_main_titles(cls, _source_record):
+            return ["Title"]
+
+        def get_source_link(self, source_record):
+            return str(source_record["link"])
+
+        def get_timdex_record_id(self, source_record):
+            return f"cool-repo:{source_record['id']}"
+
+        @classmethod
+        def get_source_record_id(cls, source_record):
+            return str(source_record["id"])
+
+        @classmethod
+        def record_is_deleted(cls, _source_record):
+            return False
+
+        def record_is_excluded(self, source_record):
+            source_link = self.get_source_link(source_record)
+            return source_link in (self.exclusion_list or [])
+
+    exclusion_list_path = tmp_path / "exclusions.csv"
+    exclusion_list_path.write_text("https://example.com/exclude-me\n")
+    transformer = ExcludingTransformer(
+        "cool-repo",
+        iter([{"id": "123", "link": "https://example.com/exclude-me"}]),
+        exclusion_list_path=str(exclusion_list_path),
+    )
+
+    dataset_record = next(transformer)
+    assert dataset_record.action == "skip"
+    assert dataset_record.transformed_record is None
+    assert json.loads(dataset_record.source_record) == {
+        "id": "123",
+        "link": "https://example.com/exclude-me",
+    }
+
+
 def test_transformer_get_transformer_returns_correct_class_name():
     assert Transformer.get_transformer("jpal") == Datacite
 
diff --git a/tests/test_cli.py b/tests/test_cli.py
index c8acd2b..a2dee8e 100644
--- a/tests/test_cli.py
+++ b/tests/test_cli.py
@@ -2,6 +2,7 @@
 from unittest import mock
 
 from transmogrifier.cli import main
+from transmogrifier.exceptions import CriticalError
 
 
 def test_transform_no_sentry_not_verbose(
@@ -211,3 +212,36 @@ def test_transform_no_memory_fault_for_threaded_bs4_parsing(monkeypatch, tmp_pat
         check=False,
     )
     assert result.returncode == 0
+
+
+def test_transform_critical_error_prevents_writing(
+    caplog, runner, source_input_file, source_transformer, empty_dataset_location
+):
+    caplog.set_level("INFO")
+
+    with (
+        mock.patch(
+            "transmogrifier.cli.Transformer.load", return_value=source_transformer
+        ),
+        mock.patch.object(
+            source_transformer,
+            "get_timdex_record_id",
+            side_effect=CriticalError("Catastrophic failure, no records will work!"),
+        ),
+    ):
+        result = runner.invoke(
+            main,
+            [
+                "-s",
+                "libguides",
+                "-i",
+                source_input_file,
+                "--output-location",
+                empty_dataset_location,
+            ],
+        )
+
+    assert isinstance(result.exception, CriticalError)
+    assert str(result.exception) == "Catastrophic failure, no records will work!"
+    assert result.exit_code != 0
+    assert "Completed transform, total records processed" not in caplog.text
diff --git a/transmogrifier/exceptions.py b/transmogrifier/exceptions.py
index 8022d9c..0307bb2 100644
--- a/transmogrifier/exceptions.py
+++ b/transmogrifier/exceptions.py
@@ -19,3 +19,10 @@ class SkippedRecordEvent(Exception):  # noqa: N818
     def __init__(self, message: str | None = None, source_record_id: str | None = None):
         super().__init__(message)
         self.source_record_id = source_record_id
+
+
+class CriticalError(Exception):
+    """Exception raised for critical errors that should terminate the run."""
+
+    def __init__(self, message: str | None = None):
+        super().__init__(message)
diff --git a/transmogrifier/sources/transformer.py b/transmogrifier/sources/transformer.py
index 9a7f281..e9d5daa 100644
--- a/transmogrifier/sources/transformer.py
+++ b/transmogrifier/sources/transformer.py
@@ -23,7 +23,11 @@
 
 import transmogrifier.models as timdex
 from transmogrifier.config import SOURCES
-from transmogrifier.exceptions import DeletedRecordEvent, SkippedRecordEvent
+from transmogrifier.exceptions import (
+    CriticalError,
+    DeletedRecordEvent,
+    SkippedRecordEvent,
+)
 from transmogrifier.helpers import (
     generate_citation,
     validate_date,
@@ -102,15 +106,22 @@ def load_exclusion_list(self) -> list[str]:
         Args:
             exclusion_list_path: Path to exclusion list file (s3://bucket/key or local
             path).
+
+        Raises:
+            On error loading or parsing the file, raises CriticalError which will
+            terminate the run.
         """
-        with smart_open.open(self.exclusion_list_path, "r") as exclusion_list:
-            rows = exclusion_list.readlines()
-        exclusion_list = [row.strip() for row in rows if row.strip()]
+        try:
+            with smart_open.open(self.exclusion_list_path, "r") as exclusion_list:
+                rows = exclusion_list.readlines()
+            exclusion_list = [row.strip() for row in rows if row.strip()]
+        except Exception as exc:
+            raise CriticalError(f"Could not load exclusion list: {exc}") from exc
+
         logger.info(
             f"Loaded exclusion list from {self.exclusion_list_path} with "
             f"{len(exclusion_list)} entries"
         )
-        logger.debug(exclusion_list)
         return exclusion_list
 
     @final
@@ -149,6 +160,9 @@ def __next__(self) -> DatasetRecord:
                 self.skipped_record_count += 1
                 action = "skip"
 
+            except CriticalError:
+                raise
+
             except Exception as exception:
                 self.error_record_count += 1
                 message = f"Unhandled exception during record transformation: {exception}"