(( Dr.Sultan Al Jaber))
Al Jaber.. 33 Kilometers Separate Global Prosperity from Crisis
Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, Managing Director and CEO of ADNOC and its group of companies, Chairman of Masdar, and Executive Chairman of XRG, warned of the repercussions of Iran's actions in the Strait of Hormuz, emphasizing that they represent a threat that transcends the regional context.
In a post on his official LinkedIn page, Al Jaber stated that Iran's actions in the Strait of Hormuz, which is only 33 kilometers wide, cannot be considered merely a regional issue, but rather constitute a form of "global economic blackmail" that the world cannot accept.
Direct Repercussions for the Global Economy
Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, Managing Director and CEO of ADNOC and its group of companies, Chairman of Masdar, and Executive Chairman of XRG, explained that Asian economies were the first to feel the effects of these developments, through reduced working hours, fuel rationing, fewer flights, and even decreased use of air conditioning.
He added that these repercussions began to spread westward, with rising food and fuel prices in Europe, contributing to inflation.
Al Jaber pointed out that the disruption of navigation in the Strait of Hormuz directly impacts food prices, airfare, energy bills, and even medicine prices, emphasizing that the issue is not just about oil supplies, but about the ability of billions of people worldwide to afford their daily living expenses.
A Vital Trade and Energy Corridor
He stressed that approximately 20 percent of global energy trade passes through the Strait of Hormuz, making it a crucial factor in determining fuel prices, travel costs, and the continued operation of shipping and industry worldwide.
He emphasized that the Strait's importance extends beyond energy. Approximately 50 percent of the world's sulfur supply passes through it. Sulfur is one of the most widely used chemicals globally and is essential to numerous vital industries, from pharmaceuticals to fertilizers, which are a cornerstone of food production.
He also noted that about 30 percent of the world's liquefied petroleum gas (LPG) supply transits the Strait, a key component in everyday cooking.
Al-Jaber stressed that the smooth flow of navigation through the Strait of Hormuz is crucial for energy production and the growth of global economies, while disruptions result in significant economic costs for everyone.
He stated, "When navigation flows through Hormuz, energy moves and economies grow. When it is disrupted, everyone pays the price."
He continued, "The world must act collectively to protect the free flow of energy and safeguard economic stability. Therefore, UN Security Council Resolution 2817 must be upheld to guarantee freedom of navigation through the Strait of Hormuz."
What passes through the 33-kilometer-wide Strait of Hormuz? 30% of global LPG maritime trade.
Refined fuels: 20% jet fuel and 10% diesel. *
Crude oil: 35% of global crude oil trade, the backbone of the global* economy.
Fertilizers: 55% sulfur, 30% urea, and 25% ammonia of global* maritime* trade, all essential for agriculture and food security.
Natural gas and LNG: 20% of global LNG supply.*
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