Shell CEO warns of 'unprecedented' global energy disruption from Strait of Hormuz blockade
Shell's chief executive stated that the blockade of the Strait of Hormuz has caused unprecedented global energy disruptions, with over 10% of global oil production removed from the market since the Middle East war began. The disruption has been particularly severe in Asia, where countries have implemented fuel rationing and reduced working weeks. The CEO warned that even if the conflict ends soon, rebalancing the global energy system could take nearly a year or longer.
Shell CEO Wael Sawan told business leaders at a Wall Street Journal summit that the Strait of Hormuz blockade has created energy disruptions of unprecedented scale, removing more than 10% of global oil production from markets. The blockade, which began following US and Israeli attacks on Iran in late February, has effectively shut off roughly a fifth of global oil supplies. Asian nations including India, Indonesia, Thailand, and Vietnam have implemented fuel rationing, while Pakistan and the Philippines have moved to four-day working weeks. Recent Iranian-US strikes this week have strained a ceasefire that began in April, casting doubt on negotiations for a lasting settlement. Sawan cautioned that recovery could take nearly a year even with conflict resolution, and noted that the Ras Laffan LNG hub in Qatar—the world's largest—has suffered significant damage and is expected to resume operations by late first quarter of next year.
What different sources said
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Hormuz block sparks 'never seen before' disruption: Shell CEO
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