Hormuz crisis creates 1 billion-barrel oil shortfall, UAE minister says

The world is facing a shortfall of around one billion barrels of oil due to disruptions linked to the closure of the Strait of Hormuz, according to the UAE’s industry minister and top energy executive.

Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, said in a post on X on May 12 that the impact of the ongoing disruption is already feeding through global markets.

“The world is already 1 billion barrels short because of the closure of Hormuz,” he wrote. “That is the arithmetic of extortion.”

He warned that continued disruption to navigation through the strategically vital Strait of Hormuz is pushing up costs worldwide and placing increasing pressure on economies, industries and households.

Al Jaber said that every day the waterway remains “held hostage”, costs continue to rise for families, farms, factories and economies globally.

“The world is already 1 billion barrels short because of the closure of Hormuz,” he wrote. “That is the arithmetic of extortion.”

He called for the immediate restoration of freedom of navigation through the strait, saying it should happen “with no conditions and no delay.”

By Aghakazim Guliyev