Shell CEO warns: Closure of the Strait of Hormuz could have significant impact
Shell CEO Wael Sawan warned that a potential blockade of the Strait of Hormuz could have a significant impact on global trade. The company has developed emergency plans to address disruptions in oil supply from the Middle East. Although oil prices have risen due to the tensions, energy supply has not yet been significantly disrupted. Approximately 20% of global oil trade passes through this strait, and any impactful event could drive up oil prices. As the conflict between Israel and Iran escalates, the shipping industry is feeling uneasy, and some shipowners have begun to avoid the strait
According to Zhitong Finance APP, Shell (SHEL.US) CEO Wael Sawan warned that a potential blockade of the Strait of Hormuz could have significant repercussions. He stated, "If this 'artery' is blocked for any reason, it will have a huge impact on global trade." He added that the company has developed contingency plans in case the conflict between Israel and Iran disrupts oil supplies from the Middle East.
As the conflict between Israel and Iran continues to escalate, and with the possibility of U.S. involvement in attacks on Iran, the global energy market remains turbulent. Although oil prices have risen due to the escalating tensions, energy supplies have not yet been significantly disrupted.
Nevertheless, the market remains highly vigilant about the possibility of supply disruptions. There have been reports that Iran may block the Strait of Hormuz as a potential response to threats from Israel and its allies. While this could trigger a crisis on a global scale, Iran may not rule out this option as the situation develops.
It is reported that approximately 20% of global oil trade passes through the Strait of Hormuz. Any event affecting the Strait of Hormuz would ripple through the global energy market, subsequently driving up oil prices. Since Israel launched attacks on Iran, Iranian officials have repeatedly suggested blocking the Strait of Hormuz. With the escalation of the conflict between Israel and Iran, the shipping industry feels uneasy, and reports indicate that some shipping owners are proactively avoiding the Strait of Hormuz.
According to previous reports, two oil tankers collided and caught fire near the Strait of Hormuz, with the cause of the collision possibly related to electronic interference from the recent Israel-Iran conflict. In response, Wael Sawan stated, "What is particularly challenging right now is some of the signal interference that is occurring." He noted that Shell's shipping operations in the Middle East are "extremely cautious" to cope with the ongoing conflict