• The energy sector is not the only one affected; the food, semiconductor, shipping, and global growth sectors have all had a significant share of the repercussions of this predicament, which the International Energy Agency described as the biggest supply disruption in the history of the global oil market.
• Majid Jafar: "What was previously a discussion about energy security has now become a clear fact and a tangible reality: energy is security."
• Two crucial factors will define the next energy era: resilience, and delivering value for local benefit, not just for export.

Sharjah, United Arab Emirates - Majid Hamid Jafar, CEO of Crescent Petroleum, asserted that the recent Gulf crisis has turned into a shock affecting the entire economy, with repercussions extending beyond the energy market, in his address to an audience of senior business, financial, and government leaders in Washington, D.C., on Monday.

In his keynote address at the "Petroleum Diplomacy 2026" conference organized by the Gulf States Institute, Jafar explained that the disruption to the flow of supplies through the Strait of Hormuz, through which about one-fifth of the world's oil usually passes, has revealed the extent to which the global economy depends on a limited number of narrow strategic waterways.

Jafar said, "This isn't just about energy; it's about the entire global economy," noting that the same waterway transports up to a third of the world's traded fertilizers and 40% of its helium (a key component in semiconductor manufacturing), along with a significant portion of the raw materials upon which modern industry depends. He added, "This impacts not only the price of fuel for your vehicles, but also your daily food, the chips in your phones, and the planes flying overhead."

According to Jafar's estimates, direct damage to energy infrastructure has already exceeded $60 billion, while losses in revenue and disrupted trade have surpassed $150 billion and continue to rise by more than $1 billion daily. The loss in oil supply has reached more than one billion barrels since the start of the disruption. The International Energy Agency has described this predicament as the largest supply disruption in the history of the global oil market, while economists have lowered their global growth forecasts for this year and raised their inflation projections.

Jaafar continued: “Infrastructure is not just steel and concrete; it is human effort, accumulated expertise, and livelihoods that millions depend on daily,” praising the engineers, operators, and field teams in the region’s energy sector who have maintained the flow of supplies despite unprecedented risks, often at great personal sacrifice.

He also emphasized a clear stance on targeting energy facilities, saying: "The deliberate targeting of civilian energy infrastructure is a war crime under international law," noting the repercussions for lives and livelihoods, not only in producing countries, but in every economy that depends on this energy, including some of the poorest populations in Asia .

Jaafar explained that the approach that has focused for years on simplifying the operation of energy systems may have made them more vulnerable to damage and risks, stressing that flexibility is the decisive factor that will determine the course of the next stage, saying: “Any supply source that relies entirely on a single outlet is insecure, no matter its size. True security today means a robust infrastructure, close interconnection, and effective alternative options that can be resorted to in case of emergencies.”

In his remarks, Jaafar explained that flexibility itself has become an area for investment, pointing to the numerous opportunities now available for sovereign wealth funds, development finance institutions, and long-term corporate capital to support new energy corridors, enhance distributed storage, and strengthen international connectivity. This is an area in which the Gulf region has already begun investing, with governments working to establish land routes bypassing the Strait, distributing strategic storage across multiple locations, and investing in alternative export pipelines and interconnection networks to reduce reliance on limited corridors.

Jaafar emphasized that the region's future lies in achieving local value, not just focusing on exports. He cited the operations of Crescent Petroleum in Iraq, which continued to operate and expand despite security challenges and regional conflict. Gas production increased by 50% last year with support from international partners, including the U.S. International Development Finance Corporation, which has continued its support across successive U.S. administrations. He explained that this gas does not leave the country; instead, it powers homes, hospitals, schools, and industries, benefiting and bringing prosperity to millions of Iraqis. He stated, "This is true resilience; it's not about being an export product, but about local value in production, use, and impact."

Jaafar concluded by saying, "The countries and companies that will thrive in the coming energy age are not the most productive, but those that secure their production by establishing more resilient systems and transform their resources into sustainable value for their people."

About Crescent Petroleum

Crescent Petroleum is the first and largest private exploration and production company in the Middle East, with over 53 years of experience as an international operator in many countries including Egypt, Yemen, Canada, Tunisia and Argentina, in addition to its existing operations in the United Arab Emirates and Iraq .

Crescent Petroleum is headquartered in Sharjah, UAE, with international offices in the UK and three branches in Iraq, as well as subsidiaries in Egypt and Bahrain. It is the largest shareholder in Dana Gas, the first and largest privately owned regional natural gas company in the Middle East . www.crescentpetroleum.com

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