• ADNOC CEO Sultan Al Jaber said the Strait of Hormuz closure is the most severe supply disruption on record, labeling it "economic terrorism."
  • UAE oil output has been halved since Iran shut the waterway on Feb. 28, following a U.S.-Israel assault, but ADNOC continues loading cargoes.
  • The crisis threatens roughly 20% of global oil trade, with no resolution in sight as military conflict persists.

Unprecedented Chokepoint Closure

The Strait of Hormuz has been effectively shut since Feb. 28, 2026, after Iranian Armed Forces issued radio warnings prohibiting all navigation, particularly targeting non-Iranian tankers. The move came in retaliation for a large-scale U.S.-Israel assault on Iran.

“This is the most severe supply disruption on record,” ADNOC CEO Sultan Al Jaber said on Thursday. “Iran has made passage subject to permission, conditions and political leverage. That is not freedom of navigation. It is economic terrorism, and Iran must be held accountable for the damages.”

UAE Output Halved, But ADNOC Adapts

The UAE's oil output has been slashed by half since the strait closure, though ADNOC continues loading cargoes and plans to expand output within damage constraints. The company is leveraging the Habshan-Fujairah pipeline, which can bypass the strait with a capacity of 1.5 million barrels per day.

“We will expand output as much as possible within the constraints of the damage,” Al Jaber said, without specifying the extent of damage to infrastructure. ADNOC Gas has also made operational adjustments in response to the disruption.

Global Energy Crisis Deepens

The closure threatens roughly 20% of global oil trade passing through Hormuz, driving oil prices sharply higher. The Federal Reserve Bank of Dallas warned the closure could cause a “profound global economic shock beyond initial expectations.”

Al Jaber demanded Iran reopen the waterway unconditionally. “Without a deal, the region risks a prolonged energy crisis,” he said. Efforts to reach Iran for comment were unsuccessful.

Regional Infrastructure Under Fire

Saudi Arabia, Kuwait, and the UAE have all reported attacks on oil infrastructure amid the ongoing conflict. ADNOC confirmed its operations were unaffected by reported refinery attacks, but the broader energy sector remains on high alert.

This article has been updated to reflect ADNOC's clarification that its operations were not hit by refinery attacks.