Rising Global Tensions Bring the Energy and Minerals Conflict Back to the Forefront

Amid escalating tensions stemming from the U.S.-Israeli conflict with Iran, and the resulting repercussions such as the closure of the Strait of Hormuz, the situation is no longer limited to military confrontations. It now reflects a deeper economic struggle led by major powers, centered on control over energy resources and strategic minerals.

A Conflict Extending Beyond Oil to Strategic Minerals 

Ayman Ayyash, CEO of NAMC, explained during an interview with Husna Radio that the global balance of power is undergoing a fundamental shift. Oil is no longer the sole influencing factor; instead, rare and strategic minerals have emerged as a key element in international competition due to their critical role in technological and military industries.

He noted that over the past decade, the United States has successfully transitioned from being the world’s largest oil importer to one of the leading producers and exporters, thanks to advanced technologies such as hydraulic fracturing and horizontal drilling. This shift has reduced its reliance on Gulf oil and prompted Washington to redirect its strategy toward countering Chinese influence—especially given China’s control of more than 80% of global rare earth production.

He added that current tensions, including the escalation with Iran and disruptions in navigation through the Strait of Hormuz, can be interpreted as part of broader efforts to exert economic pressure on China by impacting the energy supplies it depends on.

China Prefers Economic Tools 

Regarding China’s position, Ayyash indicated that it tends to avoid direct military confrontation, focusing instead on strengthening its economic power. This approach has been supported by a long trajectory of globalization that has enabled China to establish itself as a major industrial force. However, he warned that continued pressure could lead to a more complex phase of economic conflict, with potential repercussions for global market stability.

Energy Price Volatility and Global Impacts 

Ayyash highlighted that oil prices are not determined solely by production factors but are also influenced by global market movements and pricing benchmarks such as Brent and West Texas Intermediate (WTI), making them highly sensitive to political and economic fluctuations. He suggested that current price increases may be temporary, but they could trigger a wave of global inflation, particularly in import-dependent regions such as Europe and Australia.

Jordan: Between Opportunities and Challenges 

On the local level, Ayyash pointed out that Jordan could benefit from its strategic geographic location as a key logistics corridor for Gulf countries, particularly through the Port of Aqaba, should regional disruptions persist.

He emphasized that the Kingdom possesses several strengths, including:

• Diversified energy sources, with renewable energy contributing approximately 27–28%
• Opportunities for regional cooperation, especially with Iraq in the energy sector
• The ability to support regional food supply chains

However, he also expected the local economy to be affected by rising fuel prices, which would impact transportation costs, commodity prices, and electricity bills.

The Mining Sector… A Strategic Opportunity for Jordan 

Ayyash stressed that the mining sector represents one of Jordan’s most promising opportunities, particularly amid growing global demand for strategic minerals. He explained that free trade agreements with the United States and the European Union provide the Kingdom with a competitive advantage, potentially positioning it as a key partner in supplying global markets with these vital resources.