Russian executive says US using Strait of Hormuz to 'reshape' energy markets

The chief executive of Russia's Rosneft said on Saturday that the US was attempting to use the closure of the Strait of Hormuz for its own benefit.

“The closure of the Strait of Hormuz is an attempt to reshape global energy market regulations to benefit the United States. The measures taken to block the strait were aimed at Iran, but backfired on the entire world. The strategic risks were underestimated,” Igor Sechin said.

The head of the Russian state-controlled energy company also said US energy firms were the main beneficiaries of the closure of the key shipping route.

“The main beneficiaries, of course, were American companies, who gained non-competitive advantages and the ability to secure high-cost supplies,” Sechin said.

Iran blockaded the Strait of Hormuz, the route for about a fifth of world oil supplies and other vital goods, including fertilisers, after the US and Israel attacked Iran and killed Supreme Leader Ali Khamenei in February.

The US has also imposed a blockade on Iranian ports.

Speaking at the St Petersburg International Economic Forum, Sechin, a long-standing ally of President Vladimir Putin, said the Opec+ group of leading oil producers had lost some of its potential following the United Arab Emirates' withdrawal from the alliance.

“As a result, the alliance's production has fallen from 58 to 37 million barrels per day over the past 10 years,” he said.