Closure of the Strait of Hormuz Considered Economic Terrorism Against All Countries
The closure of the Strait of Hormuz is regarded as economic terrorism that affects all countries worldwide, as stated by Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology in the UAE. In light of current geopolitical developments, these practices highlight their profound impact on energy markets and global supply chains. This article explores the implications of the closure of the Strait of Hormuz and its effect on global economic and political security.
Implications of the Closure on the Global Economy
Dr. Sultan Ahmed Al Jaber emphasized in his speech during the opening of the “Sierra Energy Week” in Houston that Iran‘s closure of the Strait of Hormuz represents “economic terrorism” that extends beyond the impact on energy markets. He explained that when the security of the strait is threatened, costs increase daily for factories, farms, and families around the world. The strait is a vital artery through which 20 million barrels of oil pass daily, representing one-fifth of global supplies. Thus, the disruptions caused by its closure directly affect oil prices, leading to increased living costs worldwide.
Energy Security as a Global Priority
Al Jaber stated that energy security is a vital element that determines the fate of many communities. “When the security of the Strait of Hormuz is at risk, pressures quickly spread to the rest of the world.” He noted that the cost of living rises significantly, negatively impacting the most vulnerable populations. The closure of the Strait of Hormuz is an unacceptable threat, as no country should be allowed to hold this vital passage hostage.
UAE’s Efforts to Enhance Stability
Al Jaber emphasized that the UAE has taken proactive steps to prevent this conflict but is prepared to face it if necessary. He highlighted the positive impact of investing in infrastructure and establishing long-term strategic partnerships, which have strengthened the UAE’s capabilities to address crises. He affirmed that ADNOC has faced numerous challenges without allowing them to affect its commitments to global energy markets.
Call for Enhanced Global Cooperation
Al Jaber issued an open invitation to energy sector leaders to participate in the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) next November. He stressed the importance of collective action to enhance stability in the global energy system. “If you believe that a collaborative approach should prevail over a mindset of conflict, then you belong with us.” This highlights the necessity for countries to unite in addressing the challenges posed by the closure of the Strait of Hormuz, which can be considered economic terrorism against all nations.
As events unfold, it is clear that energy security and stability are not just slogans but form the foundation for a prosperous economic life, underscoring the need for a collective commitment to ensure that vital trade routes remain open and secure.