Iran's blockade of the Strait of Hormuz amounts to an “arithmetic of extortion”, Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, said on Tuesday.
The managing director and group chief executive of Adnoc demanded unconditional restoration of free navigation as the cumulative toll on global oil supply crosses one billion barrels.
“Every day the strait is held hostage, the costs go up – for families, farms, factories and economies around the world,” Dr Al Jaber posted on social media website X. “Return freedom of navigation. No conditions. No delay.”
His post echoed warnings from Saudi Aramco president and chief executive Amin Nasser, who told investors on Monday that the supply shock that began in the first quarter is the largest the world has ever experienced.
The world has lost about one billion barrels of oil over the past two months, with energy markets needing time to stabilise even if flows resume, Mr Nasser said. The market loses 100 million barrels every week the strait remains closed, with just two to five ships transiting daily compared with 70 before the conflict, he added.
The disruption has pushed airline ticket prices up 20 per cent, fuel costs up 30 per cent and fertiliser prices up 50 per cent, Dr Al Jaber said in his post. Brent crude is trading near $100 a barrel, about 40 per cent above prewar levels. Inventories of petrol and jet fuel are drawing towards critically low levels before the summer travel season, Mr Nasser said.
Iran’s blockade, as well as attacks on Gulf sites, have also affected Adnoc’s operations. Adnoc Gas said on Tuesday that it aims to restore 80 per cent of processing capacity at its Habshan complex, one of the world's largest gas processing sites, by the end of 2026.
The site sustained significant damage during Iran's attacks on the UAE in April. The company said the Hormuz closure is expected to reduce second-quarter net income to between $400 million and $600 million.
Even if Hormuz reopens immediately, Mr Nasser said it will take months for the market to rebalance, with normalisation extending into 2027 if the closure stretches past mid-June.
Aramco has pushed its East-West pipeline to its maximum capacity of seven million barrels per day to bypass the strait, though the measure has only partially offset losses.
