ST. PETERSBURG (ANP/RTR) – American energy companies benefit the most from the closure of the Strait of Hormuz. That was stated on Saturday by Igor Sechin, head of the major Russian oil producer Rosneft. However, he warned that continued tensions in the important strait will undermine long-term demand for oil.
Iran has blocked the strait since the start of the Iran War, following attacks by the United States and Israel. The US is blockading Iranian ports. Oil prices have risen sharply due to the closure of the Strait of Hormuz.
Sechin is considered a key ally of Russian President Vladimir Putin. He labelled the American action as an attempt to alter the fundamental contours of global energy markets in favour of American interests. He added that the strategic risks had not been fully assessed.
“The closure of the Strait of Hormuz is an attempt to reform global energy market regulation for the benefit of the United States,” Sechin said at a meeting in St. Petersburg. “The measures to block the street were aimed at Iran, but backfired on the entire world. The strategic risks were underestimated.” He added that the biggest beneficiaries were American companies, as they gained the opportunity to secure expensive supplies.”
Sechin also believes that if the unrest in the Strait of Hormuz persists, this could potentially lead to a new wave of interest in alternative energy. The US is the world’s largest oil producer, followed by Saudi Arabia and Russia.
Share
Advertisement
Read more