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Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and managing director and group chief executive of Adnoc, has said Iran's actions in the Strait of Hormuz are a form of “global economic extortion”, and emphasised the growing price people are paying for its effective closure.
The 33km strait is a key chokepoint crossed by a fifth of the world's oil supply. Iran has imposed a blockade in the waterway, only granting passage to nations it sees as “friendly” to its regime.
Amid severe disruption to energy markets and soaring oil prices, Dr Al Jaber urged the global community to “act together to protect the free flow of energy and safeguard economic stability”.
“Disrupting Hormuz hits food prices, air fares, energy bills, medicine costs and much more. This is not about oil supply; it’s about every day affordability for billions of people,” Dr Al Jaber wrote on LinkedIn on Wednesday.
“When Hormuz flows, energy moves and economies grow. When it is disrupted, everyone pays.”
Dr Al Jaber noted that Asian economies have been hit first, prompting governments across the continent to introduce measures including shorter working weeks, fuel rationing, reduced flights and cuts to air-conditioning services.
He warned that the effects of the crisis are moving west, and that Europe is now beginning to feel the pinch of higher food and fuel prices, driving inflation.
Besides energy, the strait is also vital to industrial commodities including sulphur, which is essential in producing all kinds of goods, from pharmaceuticals to fertilisers.
“Fertilisers underpin food production, while 30 per cent of global LPG [liquefied petroleum gas] – essential for daily cooking – also flows through this corridor,” Dr Al Jaber said.
The number of tankers crossing the strait has fallen by more than 90 per cent since the conflict began on February 28, according to data from Kpler.
“Hormuz is the path … determining the price at the pump, the cost of family holidays, and keeping trucks delivering goods and industry moving,” Dr Al Jaber said.
In recent weeks, Dr Al Jaber has called the blockade of Hormuz an act of “economic terrorism” against every nation in the world, and during a visit to Washington where he met US Vice President JD Vance, he said that “every nation pays the ransom” as Iran holds the strait hostage.
The US-Israeli war on Iran is in its fifth week, with its endgame still unclear. Iran continues to attack critical infrastructure in the Gulf.
Washington and Tehran have exchanged threats, as well as issuing contradictory messages about the progress of negotiations to end the conflict.
Last week, Dr Al Jaber received the Distinguished Global Leadership Award from the Middle East Institute in Washington. He dedicated the honour to President Sheikh Mohamed and the UAE's front-line workers.
