Amidst the ongoing tension in the Gulf region, United Arab Emirates (UAE) oil giant Adnoc (ADNOC) has engaged Iran. Adnoc CEO Sultan Ahmed Al Jaber has said that Iran should open the Strait of Hormuz immediately and without any conditions. He said that independence of this sea route is very important for the economic stability of the world. Iran has kept Hormuz closed since the US-Israeli military action in West Asia. At present 230 ships are stuck in this sea route.
‘This is not freedom of navigation, it is coercion’
Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, shared a post on social media platform LinkedIn. He said Iran has effectively closed the strategic waterway since the war began on February 28.
bad effect on oil production
According to a Reuters report, the closure of Hormuz has had a deep impact on UAE’s oil production. By mid-March the UAE’s oil production had dropped to half. A huge company like Adnoc has been forced to stop production. However, the company is trying to export through alternative routes. But challenges still remain.
Demand for compensation from Iran
UAE has not only demanded to open the way in this matter, but has also said that Iran should be held accountable. Al Jaber said Iran should be held fully accountable for the “illegal attacks” it carried out on the UAE’s civilian and energy infrastructure. He has also demanded compensation for the damage caused by these attacks. Hormuz is the world’s most important ‘oil chokepoint’. Currently about 230 ships carrying oil are standing there and waiting to be released. Al Jaber warned that every day of closure could mean oil shortages in the global market, rising prices and economic shock.