The United Arab Emirates on Monday condemned Iran's attacks against shipping in the Strait of Hormuz as a form of "economic terrorism" that is holding the world hostage.

"Let me be absolutely clear, weaponizing the Strait of Hormuz is not an act of aggression against one nation," said Sultan Ahmed Al Jaber, CEO of state-owned Abu Dhabi National Oil Company.

"It is economic terrorism against every nation, and no country should be allowed to hold Hormuz hostage — not now, not ever," Al Jaber told oil industry executives at S&P Global's CERAWeek conference here.

The strait is the most important sea route for oil in the world. About 20% of global oil and liquefied natural gas supplies transited the narrow waterway to global markets before the war. Tanker traffic has ground to a halt due to Iran's attacks on ships in the Persian Gulf.

"While we all appreciate all efforts to stabilize markets and reduce prices, let us be clear — this is not a supply issue," Al Jaber said. "It is a security issue and has only one durable answer — keeping the strait open."

Al Jaber delivered his remarks through a video message. The CEO was scheduled to attend the conference but canceled his appearance because of the war.

Kuwait Petroleum Corporation CEO Shaikh Nawaf S. Al-Sabah has canceled his in-person appearance at the conference Tuesday due to the war. He will deliver virtual remarks instead, a spokesperson told CNBC.

Saudi Aramco CEO Amin Nasser has pulled out of the conference as well, Reuters reported, citing an unnamed source.

The U.S. and Israel launched a massive attack against Iran on Feb. 28, killing its head of state, Ayatollah Ali Khamenei, and other senior leaders. The two allies have launched waves of airstrikes for weeks targeting the Islamic Republic's military capabilities.

Iran has responded by attacking Arab neighbors that did not participate in the U.S.-Israeli attack. Tehran has launched 352 ballistic missiles, 15 cruise missiles and more than 1,700 drones at the UAE since the war began, according to the UAE's Defense Ministry. The attacks have killed eight people and left 161 injured, it said.

"The United Arab Emirates was hit by an attack that was illegal, erratic, unjustified and completely unprovoked," Al Jaber said. "We did not ask for this conflict. In fact, we took every possible step to prevent it."

The war appeared to be escalating further over the weekend when U.S. President Donald Trump threatened to bomb Iran's power plants if it did not allow traffic to resume through the strait.

Trump on Monday said he postponed those strikes for five days after he said the U.S. had talks with Iran, which he described as "productive." Oil prices plunged nearly 11% on Monday as Trump's sudden change of course raised hopes that war might be resolved through negotiations. Prices have surged more than 30% since the war began. (CNBC)

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