The global economic outlook has deteriorated sharply in recent weeks, according to the latest edition of the World Economic Forum’s Chief Economists’ Outlook published on Thursday (May 28).
Fresh US military strikes near Iran’s strategic port city of Bandar Abbas and comments from President Donald Trump that he would not be rushed into a deal, added to tensions in the Gulf, while oil prices rebounded after sharp losses earlier in the week.
Two liquefied natural gas tankers passed through the Strait of Hormuz on Monday ( May 25) heading to route to Pakistan and China, while a supertanker carrying Iraqi crude for China departed the Gulf on Saturday after being stranded for nearly three months, according to shipping data cited by Reuters.
The agreement the US and Iran are close to signing involves a 60-day ceasefire extension during which the Strait of Hormuz would be reopened, Axios has reported. Iran would freely sell oil, and negotiations would be held on curbing its nuclear programme, it said.
ADNOC remained committed to its $150 billion five-year capital expenditure (CAPEX) programme, said Dr Sultan bin Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology. He sought an absolute commitment to freedom of navigation through the Strait of Hormuz to to enhance global energy resilience.
The Abu Dhabi National Oil Company (ADNOC) is accelerating construction of a second crude export pipeline designed to bypass the strategically sensitive Strait of Hormuz, with the project now 50% complete and targeted for delivery in 2027, according to Dr Sultan bin Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO.
Three supertankers carrying 6 million barrels of Middle East crude resumed crossing the strategic Strait of Hormuz on Wednesday, signalling tentative hopes for stability in global oil flows as US President Donald Trump indicated he was prepared to give Iran a few more days to respond to Washington’s latest proposal aimed at ending the conflict.
The UAE is accelerating construction of a major new oil pipeline that will double ADNOC’s crude export capacity through the emirate of Fujairah, strengthening the country’s ability to ship oil to global markets without relying on the strategically vital but increasingly vulnerable Strait of Hormuz.
A cargo ship was sunk off Oman and another vessel was reportedly seized near the United Arab Emirates and taken toward Iranian waters on Thursday, underscoring the continuing disruption to shipping through the Strait of Hormuz as diplomatic efforts to ease tensions showed little sign of success.
Countries striking side deals with Iran to secure oil and gas shipments through the Strait of Hormuz are raising fresh concerns among Gulf exporters, as the lack of progress in US-Iran peace talks fuels fears that Tehran could entrench its new control over one of the world’s most critical energy corridors.
