The Strait of Hormuz. ARCHIVE

Sultan Ahmed Al Jaber has warned that ongoing disruption in the Strait of Hormuz is affecting not just the region, but the global economy. Al Jaber, who serves as UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, said the situation has escalated into a global concern due to the waterway’s critical role in energy and trade. The Strait of Hormuz, which is only 33 kilometers wide, has faced severe disruption for nearly four weeks following a wave of threats and attacks on vessels. Shipping activity has been heavily restricted, with many commercial ships halting transit due to safety risks. According to Al Jaber, “Iranian interventions in this vital waterway represent unacceptable economic pressure that the international community cannot ignore.” He explained that as much as 13 to 14 million barrels of oil per day could be affected if disruptions continue, with global oil prices already rising beyond $100 per barrel. “Asian economies were the first to be affected, as this was reflected in reduced working hours, fuel consumption rationalisation, fewer flights, and restrictions on energy use,” Al Jaber said. He added that the impact is now spreading further. “Today, the repercussions are extending westward to Europe, with rising food and energy prices, further intensifying inflationary pressures on consumers.” The minister stressed that the consequences go beyond fuel supply, affecting everyday costs such as food, airline tickets, medicine and electricity. “Around 20 percent of global energy flows pass through this strait,” he said. “Approximately 50 percent of global sulfur supplies and about 30 percent of Liquefied Petroleum Gas also transit through it.” He noted that smooth operations in the strait support economic growth, while disruptions can slow global markets and increase costs worldwide. Al Jaber called for coordinated international action to ensure safe navigation, highlighting the importance of United Nations Security Council Resolution 2817 in maintaining secure passage through the waterway. ICA/Expat Media
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