Strait of Hormuz not open as Iran controls access, ADNOC CEO warns

Sultan Ahmed Al Jaber, group chief executive of Abu Dhabi National Oil Company (ADNOC) and the UAE’s Minister of Industry and Advanced Technology, said the Strait of Hormuz remains effectively closed despite a recent temporary ceasefire, with Iran controlling access. He urged the immediate and unconditional reopening of the corridor, warning that continued restrictions would deepen the global oil supply shock.

Al Jaber made his remarks at a major energy industry gathering in Houston where executives and officials discussed the ramifications of restricted maritime traffic through one of the world’s most critical chokepoints. He noted that a significant portion of global crude typically transits the strait—commonly cited at about 20%—and that congestion and transit denials have left dozens or even hundreds of loaded tankers waiting to move, amplifying logistical strain across markets.

The situation has translated into tangible market effects: benchmark crude prices showed volatility around the ceasefire announcement, while insurers and traders recalibrated risk premiums. Disruptions to normal shipping lanes have forced some exporters to redirect cargoes via alternative pipelines and ports, raising logistical costs and creating localized shortages for refiners that depend on steady tanker arrivals.

In the broader geopolitical context, the de facto control of the strait underscores persistent vulnerabilities in Middle East energy security and the global economic exposure to regional conflict. Governments and international agencies are weighing measures ranging from naval escorts to coordinated diplomatic pressure to secure freedom of navigation, but analysts stress that temporary fixes may not substitute for durable, multilateral security arrangements for the waterway.

Market observers expect that if Iran’s control over access persists, the oil market will carry elevated risk premiums and intermittent supply shocks in the weeks to months ahead. Short-term mitigation—such as release of strategic stocks and rerouting cargoes—could ease immediate pressure, but a sustained return to stable pricing will likely depend on a clear, enforceable guarantee of unimpeded passage through the Strait of Hormuz.