The administrator of the Canal Authority Dr. Ricaurte Vásquez Morales sat down with Fox News Digital for an exclusive interview to discuss energy issues in the Middle East and how the Panama Canal is expanding its power.
The manager of the Panama Canal has expressed that he is able to make this canal and plans to improve the readiness of the supply of goods as the Strait of Hormuz reaches a halt due to the US-Israeli strikes in Iran.
Dr. Ricaurte Vásquez Morales, the manager of the Panama Canal, sat down during an exclusive interview with Fox News Digital and noted the expected development of the canal since the busiest commercial shipping lane, the Strait of Hormuz, has seen little traffic in the past few days.
“For many years we have been the main channel for moving LNG from the US to Asia,” Morales told Fox News Digital. “Qatar usually supplies Asia, and after the war in Ukraine, most of the American LNG went to Europe to replace Russian LNG.”
The manager of the Panama Canal said that this waterway is ready to help stabilize energy supply chains around the world as the Strait of Hormuz narrows significantly following the US-Israeli strikes on Iran. (LUIS ACOSTA/AFP via Getty Images/Getty Images)
“What we see is that prices are likely to increase for LNG, which means that the current cost of inventory on the ship will increase,” he continued. “Gas prices will go up.”
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Morales predicts that traffic will increase in the Panama Canal as restrictions in the Strait of Hormuz continue to hold.
“The Panama Canal has to go one or two times a day, which means, in the old days, we had three times a day,” added Morales. “So it’s going to slowly rise and move from the East Coast of the United States to Asia.”
The Strait of Hormuz normally facilitates the transportation of approximately 20-21 million barrels of oil per day. As of last Friday, only four cargo ships have successfully sailed to the port, and one of those ships was carrying maize.
With nearly one-fifth of the world’s oil transiting through the Strait of Hormuz, the traffic slowdown has raised global energy concerns and underscored the strategic role of the Panama Canal as an alternative shipping route. (Giuseppe Cacace/AFP via Getty Images/Getty Images)
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In comparison, about 2.3 million barrels pass through the Panama Canal each day.
About one-fifth of the world’s oil and one-fourth of the world’s total seaborne oil trade pass through the Strait of Hormuz.
As for the Panama Canal, the director said that they have a lot of water and a high volume that will allow many ships to pass.
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The governor also spoke about the threat of tariffs that have threatened global trade with the US since President Donald Trump took office, noting the increase in traffic due to the threat of tariffs.
Aerial view of the port of Fujairah, United Arab Emirates, on the Strait of Hormuz. (REUTERS/Stringer/Reuters)
“In the last 12 months, there has been an increase in volumes in the Panama Canal because people were expecting prices, and they tried to pre-load cargo, especially in the last half of the year with the Christmas demand in the states,” the manager told Fox News Digital. “Now what we have is that actually in the Lunar Year, they remove all the things in Asia, so some of them have been moved to storage areas.”
President Donald Trump signaled his willingness to reopen the road when he spoke to reporters on Monday, pointing to China’s reliance on the route, saying he wants to keep the road open.
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“We are helping China a lot here and in other countries because their power is found in the Straits,” said Trump. “We have good relations with China. It is my privilege to do it.”
President Trump has emphasized that keeping the Strait of Hormuz open benefits major energy consumers like China, warning Iran that the US will respond strongly to any attempt to block oil shipments through the important waterway. (White House via X/Anadolu account via Getty Images / Getty Images)
“I mean, we do this for other parts of the world, including countries like China,” Trump said. “They get a lot of their fat because of the difficulty.”
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The president posted on Truth Social Monday night that the US would retaliate “TWENTY GREATER” against Iran if it takes any action that restricts the flow of oil through the Strait of Hormuz.
“Furthermore, we will issue targets for easy destruction that will make it difficult for Iran to rebuild, as a Nation, and – Death, Fire, and Fury will rule over them – But I hope, and I pray, that it will not happen! This is a gift from the United States of America to China, and all those Nations that use the Strait of Hormuz,” Trump sent.
