The Strait of Hormuz remains effectively closed with Iran imposing restrictions that prevent the free flow of energy to global markets, according to the chief executive of the United Arab Emirates' largest oil producer. Sultan Al Jaber, head of Abu Dhabi National Oil Co., emphasized that Tehran's insistence on supervising transits amounts to control rather than genuine passage.
Conditional Passage Equals Control
"Conditional passage is not passage. It is control by another name," Al Jaber stated in comments posted on LinkedIn. "The Strait must be open — fully, unconditionally and without restriction." His remarks highlight the ongoing complications in moving oil, gas, and other critical commodities through what is considered the world's most vital waterway.
War-Related Closure Since February
The strait has been largely shut since the Iran war began at the end of February, creating significant disruptions. Al Jaber stressed that reopening is essential to allow unrestricted navigation for hundreds of loaded oil tankers to exit the Persian Gulf and enable regional producers to increase output. Last month, he characterized Iran's blockage as economic terrorism.
Iran's Designated Safe Routes
Earlier on Thursday, Iran's Ports and Maritime Organization announced two designated safe routes for vessels entering and exiting Hormuz, according to state-run Nour News. The routes were reportedly established to avoid potential sea mines in the area. However, Al Jaber's comments suggest these measures fall short of ensuring free passage.
Production Shutdowns and Economic Impact
The UAE and other Gulf producers have been compelled to shut in production of oil, gas, and refined products due to the Hormuz blockage. This has contributed to oil prices surging above US$100 per barrel, with prices remaining near that level despite a tentative ceasefire that was supposed to include opening the strait.
Adnoc's Response and Constraints
Al Jaber noted that an estimated 230 vessels filled with oil are ready to sail. Abu Dhabi National Oil Co. has loaded cargoes and plans to expand production within the constraints of infrastructure damage suffered during the war. The company has a responsibility to its customers once the safety of employees and crews is assured, he added.
His statements underscore the broader implications for global energy security and market stability, as the standoff continues to affect one of the world's most crucial maritime chokepoints.
