Washington: The recent conflict in the Gulf has become a whole-economy shock with consequences reaching far beyond energy markets, Crescent Petroleum Chief Executive Officer Majid Jafar told an audience of senior business, finance, and government leaders in Washington, DC.
According to Emirates News Agency, Jafar, delivering the keynote address at the Arab Gulf States Institute's Petro Diplomacy 2026 conference, emphasized the disruption to flows through the Strait of Hormuz, a critical passage for global oil, highlighting the global economy's dependency on strategic chokepoints. Jafar noted the waterway's significance in transporting a large percentage of the world's traded commodities, which underscores the broad impact on various sectors beyond just oil markets.
Jafar estimated direct damage to energy infrastructure at over $60 billion, with lost revenue and disrupted trade exceeding $150 billion, continuing to rise by more than $1 billion daily. The International Energy Agency labeled this as the largest supply disruption in oil market history, affecting global growth and inflation forecasts. Jafar paid tribute to energy sector personnel who maintained supply chains under challenging conditions and highlighted the legal and humanitarian implications of targeting energy facilities.
He stressed the need for resilience in energy systems, advocating for infrastructure, connectivity, and alternatives to ensure security. Jafar pointed to investment opportunities in resilience, with Gulf governments proactively developing infrastructure to mitigate reliance on the Strait of Hormuz. Crescent Petroleum's increased gas production in Iraq, supported by international partners, exemplifies the potential for creating regional value.
Jafar concluded that thriving in the new energy era requires building resilient systems to convert resources into lasting value for local populations.