Sharjah, UAE: Majid Hamid Jafar, CEO of Crescent Petroleum, affirmed that the disruptions witnessed in the Strait of Hormuz during the recent crisis revealed the extent to which the global economy relies on a limited number of strategic waterways.
He also warned of the far-reaching repercussions affecting energy markets, trade, and global economic growth.
Huge losses shake energy markets
Speaking at the “Petroleum Diplomacy 2026” conference in Washington, D.C., Jafar stated that the crisis has transcended being merely an energy issue, evolving into a challenge affecting the entire global economy.
He noted that direct damage to energy infrastructure has exceeded $60 billion, while losses in revenue and disrupted trade have surpassed $150 billion. These losses continue to mount by more than $1 billion daily.
He added that the supply disruption has resulted in the loss of over one billion barrels of oil since the crisis began. The International Energy Agency has described this event as the largest disruption to oil supplies in the history of the global market.
Jaafar emphasized that the deliberate targeting of civilian energy infrastructure constitutes a war crime under international law. He also stressed that the repercussions of these attacks are not limited to energy-producing countries, but extend to global economies that depend on a stable flow of energy supplies.
He explained that energy facilities are not merely physical structures, but also represent human investments, accumulated expertise, and fundamental pillars upon which the lives of millions around the world depend.
Supply flexibility and new investments
The CEO of Crescent Petroleum emphasized that true energy security is no longer solely tied to production volume. It now depends on the ability of countries and companies to diversify supply routes and enhance operational flexibility.
He noted that Gulf countries have already begun implementing projects to reduce reliance on narrow sea lanes. This has been achieved through developing alternative land routes, expanding strategic storage facilities, and investing in new pipelines and interconnection networks.
Jaafar pointed out that enhancing the resilience of the energy system has become a significant investment opportunity for sovereign wealth funds and long-term financing institutions. This is further supported by infrastructure projects and alternative energy corridors.
He concluded by affirming that the countries and companies best positioned to prosper in the future will not only be the largest energy producers but also the most successful in building resilient systems and transforming natural resources into sustainable economic value for their people.