Closing the Strait of Hormuz is Economic Terrorism Against All Nations
As global political tensions rise, concerns about the closure of the Strait of Hormuz are increasing, posing a threat with profound implications for world economies. His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology in the UAE, stated that closing this strait represents economic terrorism with repercussions that extend beyond energy markets, impacting the lives of all nations around the globe.
Impact of the Strait Closure on the Global Economy
In his speech during the opening of “Sierra Energy Week” in Houston, he noted that “the closure of the Strait of Hormuz is economic terrorism against all nations.” When the security of this strait is jeopardized, costs rapidly escalate for factories, farms, and households worldwide. This vital route sees twenty million barrels of oil passing through it daily, accounting for one-fifth of the world’s daily needs, highlighting the strait’s importance to the global economy.
Markets and Energy: Interconnected Aspects
Oil prices have surged by 50 percent within three weeks due to tensions surrounding the strait, leading to increased living costs for the most vulnerable populations. Dr. Al Jaber emphasized that “jeopardizing the Strait of Hormuz is not an aggression against any one country, but rather economic terrorism against all nations.” These statements reflect the necessity of keeping open the channels that sustain our economies.
UAE’s Steps to Address Threats
He reported that the UAE has taken precautionary measures to prevent the escalation of crises while being prepared to confront them when necessary. At ADNOC, the company faced unprovoked attacks; however, it managed to withstand them and implement extraordinary measures to ensure the safety of its workforce and consistently supply energy to the world. These experiences have underscored the importance of defending national security and human values.
International Cooperation and Market Resilience
He also pointed out that the UAE seeks to build strategic partnerships with major nations, reflecting its strong commitment to market stability. “At ADNOC, XRG, and Masdar, we have invested over $85 billion in energy assets in the United States,” enhancing our presence in the region. Effective communication with partners is a crucial step in ensuring stable supply routes.
In light of these circumstances, Dr. Al Jaber called on energy sector leaders to participate in the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), emphasizing that cooperation is essential for bolstering global stability. He urged everyone to join discussions to ensure that the Strait of Hormuz is not used as a hostage for any political considerations, reiterating that “the closure of the Strait of Hormuz is economic terrorism against all nations.”
The repercussions of closing this strait will continue to loom, and challenges remain. Energy sustainability and market stability are closely linked to ensuring freedom of navigation in international waters, making dialogue and international cooperation more essential than ever.