Adnoc CEO Calls For Unconditional Reopening of Strait of Hormuz

The head of UAE energy giant Adnoc called for the full and unconditional reopening of the Strait of Hormuz, saying that any restrictions on the strategic waterway threaten global energy security and economic stability.Sultan Ahmed Al Jaber, Adnoc's managing director and group CEO, said access through the vital shipping lane was being "restricted, conditioned and controlled," adding that such measures amount to coercion rather than freedom of navigation."The Strait must be open - fully, unconditionally and without restriction," Al Jaber said, adding that transit via the waterway is a right under international law and not a privilege that can be granted or withheld.The remarks come amid a fragile US-Iran ceasefire, with Iranian officials signalling that passage through the Hormuz could be subject to conditions, heightening supply fears as global energy markets continue to roil amid the conflict.Al Jaber said an estimated 230 vessels were currently loaded with oil and ready to sail, but faced uncertainty over transit. He added that Adnoc had cargoes prepared and would expand production within the limits of damage sustained."Conditional passage is not passage. It is controlled by another name," said Al Jaber.Markets are now approaching a "critical crossroads," Al Jaber said, as the last cargoes shipped before the disruption reach their destinations, exposing what he described as a 40-day gap in global energy flows."The immediate priority is clear: close that gap, restore flows and rebalance markets," he said, noting that more than 20% of globally traded energy moves through the waterway.Al Jaber said the disruption of energy flows via the Hormuz is projected to hit Asia particularly hard, as about 80% of shipments through the waterway are destined for the region.Prolonged disruption is expected to tighten supplies, push up crude prices and ripple through global economies, increasing costs for industries and households alike."Every day the Strait remains restricted, the consequences compound," Al Jaber said.

-- The head of UAE energy giant Adnoc called for the full and unconditional reopening of the Strait of Hormuz, saying that any restrictions on the strategic waterway threaten global energy security and economic stability.

Sultan Ahmed Al Jaber, Adnoc's managing director and group CEO, said access through the vital shipping lane was being "restricted, conditioned and controlled," adding that such measures amount to coercion rather than freedom of navigation.

"The Strait must be open - fully, unconditionally and without restriction," Al Jaber said, adding that transit via the waterway is a right under international law and not a privilege that can be granted or withheld.

The remarks come amid a fragile US-Iran ceasefire, with Iranian officials signalling that passage through the Hormuz could be subject to conditions, heightening supply fears as global energy markets continue to roil amid the conflict.

Al Jaber said an estimated 230 vessels were currently loaded with oil and ready to sail, but faced uncertainty over transit. He added that Adnoc had cargoes prepared and would expand production within the limits of damage sustained.

"Conditional passage is not passage. It is controlled by another name," said Al Jaber.

Markets are now approaching a "critical crossroads," Al Jaber said, as the last cargoes shipped before the disruption reach their destinations, exposing what he described as a 40-day gap in global energy flows.

"The immediate priority is clear: close that gap, restore flows and rebalance markets," he said, noting that more than 20% of globally traded energy moves through the waterway.

Al Jaber said the disruption of energy flows via the Hormuz is projected to hit Asia particularly hard, as about 80% of shipments through the waterway are destined for the region.

Prolonged disruption is expected to tighten supplies, push up crude prices and ripple through global economies, increasing costs for industries and households alike.

"Every day the Strait remains restricted, the consequences compound," Al Jaber said.