Iran is requiring ships to obtain its permission to pass through the Strait of Hormuz, according to Sultan Ahmed Al Jaber, CEO of Abu Dhabi National Oil Co. (ADNOC), the United Arab Emirates' state-owned oil company [1]. Despite a two-week ceasefire agreement between the U.S. and Iran, the strait remains closed to unrestricted ship traffic, with access being 'restricted, conditioned and controlled,' Al Jaber stated in a social media post [1]. He emphasized that this situation does not constitute freedom of navigation, but rather coercion, as Iran has made clear that ships must obtain its permission to transit the strait [1].
The Strait of Hormuz is a critical passage for global oil supplies, connecting Persian Gulf producers to international markets. Before the war broke out on February 28, the UAE was pumping 3.4 million barrels per day, making it the third-largest oil producer in OPEC [1]. Approximately 20% of global oil supplies previously passed through the strait, but oil tanker traffic plunged during the conflict due to Iranian attacks on vessels, resulting in the largest oil supply disruption in history [1]. Freight analysts report that ship traffic has not increased since the ceasefire took effect, remaining at the slow trickle observed during most of the war [1].
President Donald Trump stated that the ceasefire was contingent on Iran agreeing to the complete, immediate, and safe opening of the Strait of Hormuz [1]. However, this condition has not been met, and Iran's military command announced it will 'manage and intelligently control the Strait of Hormuz' [1]. Al Jaber warned that the oil shock will only deepen the longer the strait remains restricted, with supply delays, tightening markets, and rising prices impacting economies, industries, and households worldwide [1]. He noted that some 230 tankers loaded with oil are waiting to sail out of the Gulf, and the final oil cargoes that transited the strait before the war are now arriving at their destinations [1].
Al Jaber concluded that stability depends on restoring real flows through the strait, not partial access, and highlighted that international law guarantees transit as a right, not a privilege to be granted, withheld, or weaponized [1].
CONCLUSION
Iran's continued restriction of the Strait of Hormuz, despite the ceasefire, is causing a severe disruption in global oil supply and tightening energy markets. The situation is expected to worsen with each day of delay, impacting economies and industries worldwide. Restoration of unrestricted transit is seen as critical for market stability.