The CEO of a state-owned energy giant in the United Arab Emirates condemned Iran's closure of the Strait of Hormuz, calling it an act of “economic terrorism”.
Abu Dhabi National Oil Company CEO, Sultan Ahmed Al Jaber, said when the Strait of Hormuz is “squeezed”, the pressure is felt around the world.
“Let me be absolutely clear, weaponising the Strait of Hormuz is not an act of aggression against one nation,” he told oil industry executives at S&P Global’s CERAWeek conference.
“It is economic terrorism against every nation, and no country should be allowed to hold Hormuz hostage — not now, not ever.”
Around 20% of the world’s oil travels through the Strait, and Iran’s attacks on the Persian Gulf have caused tanker traffic to grind to a halt after the war started on 28 February.
“While we all appreciate all efforts to stabilise markets and reduce prices, let us be clear — this is not a supply issue,” Al Jaber said.
“It is a security issue and has only one durable answer — keeping the Strait open.”
Oil prices have surged more than 30% since the beginning of the war.
Over the weekend, U.S. President Donald Trump threatened to bomb Iran’s power plants if it didn’t allow traffic to travel through the strait.
However, on Monday, Trump postponed those strikes for five days after having what he called “productive” conversations with Iran. Following this, oil prices plunged 11% on Monday as Trump’s sudden change of course raised hopes that the war could be resolved through negotiations.
