Al Jaber Warns Hormuz Closure Has Cut 1 Billion Barrels as UAE Speeds 5 Million bpd Push
Updated
Updated · Atlantic Council · May 20
Al Jaber Warns Hormuz Closure Has Cut 1 Billion Barrels as UAE Speeds 5 Million bpd Push
7 articles · Updated · Atlantic Council · May 20
More than 1 billion barrels of oil have been lost since the Strait of Hormuz closed, Dr. Sultan Al Jaber said, calling it the worst supply disruption on record and warning losses are still rising by nearly 100 million barrels a week.
Brent is trading 40% above pre-closure levels, he said, while fuel prices are up 30%, fertilizers 50% and airfares 25%; global growth for 2026 has been cut to 3.1% and inflation has moved above 4%.
ADNOC kept supplies moving despite direct strikes on some facilities by rerouting volumes through the UAE's east coast, using its trading network and expanding strategic storage with Asian partners; full operational recovery could take weeks to months.
The UAE is accelerating a second pipeline bypassing Hormuz toward 2027, now nearly 50% complete, and says its exit from OPEC will give it more flexibility to expand output and investment.
Al Jaber said the crisis validates an 'all of the above' strategy: ADNOC is targeting 5 million barrels a day of capacity, Masdar 100 gigawatts of renewables, and sees AI-driven power demand widening the global energy investment gap.
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Global Oil Markets in Crisis: The 2026 Strait of Hormuz Closure and Its Far-Reaching Impacts
Overview
In mid-April 2026, escalating geopolitical tensions and failed negotiations between the U.S. and Iran led to the U.S. Navy imposing a blockade on Iran’s ports, making the Strait of Hormuz largely inaccessible. This action triggered an immediate and severe crisis in global energy markets, causing an unprecedented shock to oil supplies and prices. As a result, crude oil prices jumped, and oil producers like Iraq and Kuwait began curtailing production due to export difficulties. The blockade’s impact quickly rippled through global markets, highlighting the vulnerability of energy supplies to disruptions in this critical maritime chokepoint.