State-owned energy titan of Abu Dhabi, a top regional and global oil producer
The Strait of Hormuz is still restricted despite a US-Iran ceasefire, with Iran effectively closing the waterway after recent attacks. Market uncertainty persists as energy prices rise and few ships pass through, raising concerns over global trade and stability.
Today, Iran has launched missiles, cruise missiles, drones and fast boats that have struck vessels and an oil facility in the UAE's Fujairah and the Strait of Hormuz. The US military has said it has fired on Iranian forces while escorting merchant ships through the strait and President Trump has warned Iran it will be "blown off the face of the earth" if it hits US ships.
The UAE has directed ADNOC to fast-track the West-East Pipeline, targeting 2027 operation as tensions around the Strait of Hormuz persist. The move follows Abu Dhabi’s exit from OPEC and aims to boost capacity beyond 1.8 million bpd via Fujairah, reinforcing Gulf export routes.
Oil markets are facing a prolonged impact from the current crisis in the Strait of Hormuz, with analysts and industry leaders warning that a full rebound in flows may take years. Saudi and UAE officials emphasise resilience strategies to cushion prices, while other observers caution that the damage to global trading systems will extend beyond the immediate conflict.
A tentative deal has reopened the Strait of Hormuz and allowed some vessels to leave the Persian Gulf, but global oil flows have not returned to normal. Producers and shipowners have cut output and delayed shipments; tankers stranded in the Gulf and shut-in fields will take weeks to months to restart full exports, keeping pressure on prices and inventories through summer.
The operation near the Strait of Hormuz uses ship-to-ship transfers to move oil from Gulf fleets to international vessels. Since early May, about 92 ships have participated, with large-scale activity seen in mid-June. The Apache helicopter downing and US responses feature in the latest developments; officials say no Central Command forces are directly involved in the transfers.
Since the latest talks, tanker traffic through the Strait of Hormuz has picked up, while Iran-linked vessels continue transiting. The U.S. has granted a sanctions waiver through August, and discussions aim for a durable ramp-up in Gulf LNG exports. Oil prices have fallen modestly on the news.