Tension is continuously increasing regarding the world’s most important oil route, the Strait of Hormuz. Due to the sanctions imposed by Iran, this route has still not been fully opened, due to which the global oil supply is being affected. Meanwhile, Sultan Al Haider, head of UAE’s government oil company Abu Dhabi National Oil Company (ADNOC), has expressed concern over this situation.
A way with conditions, not a way
Sultan Al Jaber clearly said that if ships are being allowed to pass with conditions, then it is not real freedom. According to him, it is necessary to open the Strait of Hormuz completely, without any conditions and without any restrictions. He described it as very important for global energy supply.
Big impact on global supply
A large part of the world’s oil and gas is supplied through the Strait of Hormuz. This route has almost come to a standstill since the regional conflict started in late February. This is having a direct impact on the international markets and the supply of oil is being disrupted.
Iran decided safe routes
Iran says that ships can pass through this route only under its supervision. Iran’s Ports and Maritime Organization has determined two safe routes so that ships can avoid potential maritime threats such as mines. However, many countries are not fully accepting this system.
More than 230 ships stranded
The seriousness of the situation can be gauged from the fact that about 230 oil-filled ships are standing near Hormuz and waiting to move forward. Many companies including ADNOC have loaded oil in their ships, but due to lack of clear passage the supply is stuck.
Production will increase only after security
ADNOC has said that it is ready to meet the needs of its customers, but first of all the safety of the employees and crew is important. The company will decide on increasing production only after the situation becomes normal. The damage to infrastructure due to the war has also affected production. Overall, the ongoing tension on the Strait of Hormuz remains a major concern for the global energy market. Until this route is completely opened, oil supply and prices may remain unstable.