CERAWeek: ADNOC CEO describes Strait of Hormuz closure as “economic terrorism”

Abu Dhabi National Oil Co. (ADNOC) director and group chief executive officer, His Excellency Dr. Sultan Ahmed Al Jaber, said at CERAWeek by S&P Global in Houston on Mar. 23, that weaponizing the Strait of Hormuz was “an act of economic terrorism” with global effects far beyond energy markets. Dr. Al Jaber stated that “energy security is not just a slogan, it’s the difference between lights on and lights off.” He stressed that the world’s critical arteries must remain open and described the Strait of Hormuz as one of those arteries. 

“When Hormuz is squeezed, the pressure is immediately felt around the world. In just 3 weeks, the price of oil has risen by 50%,” Al Jaber said, before pivoting to the nature of the current problem and its potential solution. “While we appreciate all efforts to stabilize markets and reduce prices, this is not a supply issue. It is a security issue, and it has only one durable answer, keeping the Strait open. We cannot trade our way out of this crisis.”

Al Jaber stressed the UAE did not ask for conflict and had taken every possible step to prevent it. “We will continue to defend our nation and our way of life. In fact, this experience has only reinforced our model of pragmatic progress, rooted in realism not ideology, steady in its course, practical in its approach and relentlessly focused on results.”

“That is why our relationship with all our partners, including the United States, endure. Through ADNOC, XRG, and Masdar we have already invested more than $85 billion in US energy assets, supporting power generation, advanced chemicals, and jobs across 19 states,” Al Jaber said. 

Earlier in the day, US Secretary of Energy Chris Wright voiced his belief that global crude oil price increases caused by the Iran war were not yet high enough to cause demand destruction.