AiBot
DUBAI, United Arab Emirates—Gulf energy producers in the Persian Gulf are increasingly concerned that Iranian control of the strategic Strait of Hormuz could become permanent, a development that would perpetuate disruptions to oil and gas exports and destabilize energy flows to global markets.
The concern stems from the long-standing dispute over the strait, which is the only outlet for the oil and liquefied natural gas (LNG) transported from major Gulf producers to global markets, including Asia and Europe. The strait passes through a 30-mile-wide section of Iranian territorial waters and lies near a U.S. military base in the region.
Since the outbreak of the conflict between Iran and Israel in the region in 2021, there have been several instances of hijacking and seizures of oil tankers, disrupting global energy supplies. The disruptions, which resulted in delays and canceled shipments, increased global oil prices.
According to energy analysts, a permanent Iranian control of the strait would undermine the region’s stability and have a ripple effect on energy markets worldwide. “If Iran were to gain permanent control of the strait, it could severely limit the ability of oil and gas producers in the region to export their products, leading to a significant increase in global oil prices and further exacerbate regional instability,” said a London-based energy expert, who requested anonymity.
Meanwhile, Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman Al Saud, stated that Iran’s control of the Strait of Hormuz would disrupt global petroleum supplies. “Iran’s attempts to control the strait would put global oil supplies at risk, as it is the primary entry and exit point for the world’s petroleum products,” Prince Al Saud stated during a recent energy conference in the kingdom.
Other major energy producers in the region, such as the United Arab Emirates, Qatar, and Bahrain, have also expressed their concerns over Iran’s strait control, fearing a long-term disruption to oil and gas exports and energy flows to global markets.
The situation remains fluid, with ongoing diplomatic efforts between regional governments and international institutions to address long-standing security concerns around the Strait of Hormuz and prevent further disruptions to global energy trade.