Strait of Hormuz not open, restricting access: UAE oil CEO
Abu Dhabi National Oil Co. (ADNOC) CEO said on Thursday that the Strait of Hormuz has not been opened to ship traffic after the United States and Iran agreed to a two-week ceasefire.
“This moment requires clarity,” Sultan Ahmed Al Jaber said. social media post. “So let’s be clear: The Strait of Hormuz is not open. Access is restricted, conditioned and controlled.”
Al Jaber said Iran has clearly stated that ships must obtain permission to pass through the strait. “This is not freedom of navigation. This is oppression,” the ADNOC chief said.
ADNOC is the state-owned oil company of the United Arab Emirates. The UAE was OPEC’s third-largest oil producer, pumping 3.4 million barrels a day before the war broke out on February 28.
President Donald Trump said Tuesday that the ceasefire is contingent on Iran agreeing to a full, immediate and safe opening of the Strait of Hormuz.
However, cargo analysts told CNBC that ship traffic in the strait has not increased since the ceasefire came into force. They said traffic remained at the slow flow observed for most of the war.
Iran’s military command said on Wednesday that it would “manage and intelligently control the Strait of Hormuz,” according to state sources. press tv.
Oil tanker traffic in the strait decreased due to Iranian attacks on ships during the war, leading to the largest oil supply disruption in history. The Bosphorus connects oil producers in the Persian Gulf to the global market. Before the war, about 20% of global oil supplies passed through the narrow sea route.
Al Jaber said the last oil cargoes that passed through the strait before the war have now reached their destination. He said that the oil futures market, which experienced a sharp decline after the ceasefire declaration, would soon face the physical reality of the supply disruption.
“The strait remains restricted every day, and its consequences are increasing,” the CEO said. “Supplies are delayed, markets tighten, prices rise. The impact is felt beyond energy markets, in economies, industries and households around the world. Every day counts. Every delay deepens the disruption.”
Al Jaber said about 230 tankers were loaded with oil and were waiting to leave the Gulf.
He said the strait is a natural passage subject to international law and that “transit is guaranteed as a matter of right, not a privilege to be granted, withheld or weaponized.”
“Stability now depends on the restoration of real flows,” the CEO said. “Not partial access, not temporary measures, not controlled passage, but full and reliable supply.”
