United Arab Emirates (UAE) Minister of Industry and ADNOC Managing Director and Group CEO, Sultan Ahmed Al Jaber, has accused Iran of weaponizing the Strait of Hormuz by blocking the passage of international shipments.
According to Al Jaber, Iran’s decision to restrict shipping through the strategic waterway constitutes economic terrorism against every nation. The UAE has seen its LNG and much of its oil supply constricted at this vital chokepoint, following the US-Israel conflict with Iran.
“Twenty million barrels a day. Nearly a fifth of the world’s oil and gas. Over a third of the world’s fertilizer. Almost a quarter of the world’s petrochemicals, and significant amounts of industrial metals,” Al Jaber said at the CERAWeek conference in Houston, referring to the Strait of Hormuz.
“In short, much of the oxygen of the global economy runs through a single throat. Yet, Iran believes that choking it is an acceptable strategy.”
Since the U.S.-Israeli strikes on Iran began on February 28, daily traffic of over 100 vessels, including tankers, through the Strait of Hormuz has slowed to a trickle—only a handful of cargoes per week, all apparently approved by Iran for transit.
The disruption to the global energy supply has been immediate. Asian refiners are scrambling for non-Middle Eastern supply, paying record premiums for alternative crude grades, and cutting refinery run rates. Oil prices jumped by 50% in March, Asian spot LNG prices hit multi-year highs, and Europe’s benchmark natural gas price doubled within a month.
“Weaponizing the Strait of Hormuz is not an act of aggression against one nation. It is economic terrorism against every nation. No country should be allowed to hold Hormuz hostage—not now, not ever,” Al Jaber said.
“And while we appreciate all efforts to stabilize markets and reduce prices, this is not a supply issue. It is a security issue, and it has only one durable answer: keeping the Strait open,” he added. “We cannot trade our way out of this crisis.”
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