“Economic terrorism” — that’s how Industry and Advanced Technology Minister and Adnoc CEO Sultan Al Jaber framed Iranian threats to the Strait of Hormuz, speaking at CeraWeek, state news agency Wam reports. Al Jaber warned that weaponizing the waterway isn’t just a regional issue, but has an “exponential” human cost through disruptions to supply chains, food systems, and everyday costs around the world. “Energy security is not just a slogan,” he said, “it’s the difference between the lights on and lights off.”

Yesterday, UAE defense systems dealt with seven ballistic missiles fired by Iran, as well as 16 UAVs, Wam reports. Early in the morning, one Indian national sustained minor injuries from debris from an intercepted ballistic missile that landed in Abu Dhabi’s Shawamekh, Wam reports.

Oil + gas disruptions are not letting up

Adnoc Gas says shipping disruption in the Strait of Hormuz is forcing temporary tweaks to LNG and liquids output, with exports now managed shipment-by-shipment to keep deliveries on track, according to an ADX disclosure (pdf). The company, however, affirms the pipelines are still operational, with no impact on core processing despite debris falling near some facilities.

But the strain is showing: LNG output at Das Island is running at very low levels due to export constraints, despite the resumption of processing operations at Habshan complex following an attack last week, Bloomberg reports, citing people familiar with the matter. The LNG plant has not been fully shut to allow a quick restart, with supply supported in part by gas flows from Qatar via the Dolphin pipeline.

More than 40 oil and gas facilities across nine Middle Eastern countries have been severely damaged as the Iran war enters its fourth week, International Energy Agency (IEA) Executive Director Fatih Birol said. The conflict has created what the agency calls the largest supply shock in oil market history, rivaling the impact of the 1970s oil shocks and the 2022 gas crisis. The disruption extends beyond oil and gas, hitting petrochemicals, fertilizers, sulfur, and helium. LNG imports also dropped by some 20% since the war began.

The IEA is weighing another emergency oil release as the Middle East war continues to choke supply, with consultations underway with governments in Asia and Europe on whether more barrels need to be drawn from emergency reserves.

IN CONTEXT- Asia is bearing the brunt of the oil and gas supply shock, given its dependence not just on crude but also on products and other critical flows moving through Hormuz.

Logistics routes are seeing more threats…

The threats from Iran continued: Tehran warned it will move beyond a Hormuz blockade, saying it could mine the Gulf if its coasts or islands are attacked, Reuters quotes Iranian state media as saying.

This marks another potentially direct challenge to the UAE’s position as an open-access global hub. If the “floating mine” risk is deemed credible by the London ins. market, standard maritime cover could be withdrawn for ports north of the Fujairah-Khor Fakkan line — effectively redrawing the region’s commercial geography.

… but the region is being proactive with rerouting

Saudi Arabia and the UAE have opened up a new sea-land logistics corridor between Sharjah and Dammam, the Saudi Port Authority said in a post on X.

This follows another corridor that opened up between the UAE and Oman last week, allowing cargo diverted from exposed Gulf routes to start moving through Omani ports and airports before crossing overland into the UAE.

There’s more disruption in the skies

Air France’s Dubai flights are still on hold, extending its suspension as regional risk persists, Reuters reports. The airline has pushed back the restart of its Dubai routes until 31 March, along with routes to other regional airports.

Tags: