Speaking at the Petro Diplomacy 2026 conference in Washington, D.C., Jafar emphasised that recent disruptions in the Strait of Hormuz have underscored just how deeply the global economy relies on these vital trade and energy corridors.

Consequences reach far beyond energy

Jafar pointed out that the Strait of Hormuz serves as a transit point for roughly one-fifth of the world's oil supply, alongside massive volumes of helium, fertilizer, and industrial feedstocks. Consequently, current disruptions are triggering ripple effects across the global technology, food supply, and aviation sectors.

He estimated that direct physical damage to energy infrastructure has topped $60 billion. Furthermore, financial losses stemming from disrupted trade and lost revenue have surpassed $150 billion, with more than one billion barrels of oil supply impacted since the inception of the crisis.

Prioritising resilience and alternative pathways

Jafar maintained that future energy security must prioritize resilience over mere efficiency. To achieve this, he stressed the urgency of investing in diversified infrastructure, alternative export channels, and enhanced cross-border connectivity.

He noted that Gulf nations are already investing in overland transport corridors, strategic storage networks, and alternative export pipelines specifically designed to bypass single maritime chokepoints and stabilize global supply security.

Driving long-term local value

Additionally, Jafar highlighted the necessity of shifting focus from basic energy exports toward domestic value creation. He cited Crescent Petroleum’s ongoing operations in Iraq as a prime example, where gas production surged by 50% over the past year despite facing significant regional headwinds.

He concluded that the nations and corporations best positioned to thrive in the evolving energy landscape will be those that construct resilient frameworks around their resource bases to generate sustainable economic value for local populations.