Prime Minister Gaston Browne says he hopes the Strait of Hormuz will be reopened soon, warning that continued disruptions to one of the world’s most important oil shipping routes could delay much-needed relief from high fuel and energy costs in Antigua and Barbuda.
Speaking on the Brown and Brown Show on Saturday, Browne said he had initially welcomed reports that the strategic waterway remained open, noting that global oil prices had fallen significantly in recent days.
“Last night when I addressed the executive, I was saying to them that we are so happy that the Strait of Hormuz is actually open and we’re hoping that we’ll see a further reduction in oil prices,” Browne said.
The Prime Minister noted that oil prices had dropped to about US$79 per barrel after previously reaching much higher levels.
“Yesterday they were down to about $79. I think at one point it was $77 and it ticked up a little. Fine, because it was $120,” he said.
Browne said the decline in prices had raised hopes that Antigua and Barbuda could soon see some relief from rising energy costs, which have forced the government to absorb part of the burden through subsidies and other measures.
“I was thinking, well, finally we’re going to get some relief because our government has been subsidizing petroleum products,” he said.
However, during the discussion, Browne acknowledged that he had subsequently learned that the Strait had reportedly been closed again, potentially threatening the downward trend in oil prices.
“Yeah, it’s closed. I know it’s closed, so I’m coming back to that now,” he said.
The Strait of Hormuz, located between Oman and Iran, is one of the world’s most critical maritime chokepoints, with a significant share of global oil exports passing through the narrow waterway each day. Any disruption to traffic through the strait has the potential to push global oil prices higher and increase energy costs for importing countries such as Antigua and Barbuda.
Browne said the government has worked to shield consumers from the full impact of rising fuel prices, particularly through support provided to the Antigua Public Utilities Authority (APUA) and efforts to limit increases in electricity-related fuel charges.
He noted that for several months the government had sought to keep fuel-related costs stable despite volatility in international energy markets.
The Prime Minister expressed hope that tensions affecting the shipping route would ease and that normal operations would resume, allowing oil prices to continue declining.
Lower oil prices would provide direct benefits to consumers while also reducing pressure on government finances, he indicated.
The issue is particularly significant for Antigua and Barbuda, which relies heavily on imported fuel for transportation, electricity generation and other economic activity.
Any sustained increase in global oil prices could result in higher operating costs across the economy, affecting businesses and households alike.
Browne said he remains hopeful that the situation will stabilize and that residents will ultimately benefit from lower energy prices in the months ahead.