Shell CEO Cautions on Mounting Middle East Tensions, Warns of Disruption Risks to Global Energy Supply

Shell’s Chief Executive Officer, Wael Sawan, has raised fresh concerns over the escalating geopolitical tensions in the Middle East, warning that growing hostilities between Israel and Iran could trigger serious disruptions to global energy supply chains. Speaking at an industry conference in Japan, Sawan said the company is exercising extreme caution, especially regarding its tanker movements through the region’s volatile maritime routes.

“We’re being very careful with, for example, our shipping in the region, just to make sure that we do not take any unnecessary risks,” Sawan said, adding that the recent spike in tension has amplified what was already a highly uncertain operating environment.

Shell operates extensively across the Middle East, a region that plays a pivotal role in the global oil market. Much of the oil exported from countries such as Iraq, Iran, Saudi Arabia, and the UAE travels through the Persian Gulf and exits via the Strait of Hormuz—a narrow chokepoint responsible for nearly a third of the world’s seaborne oil trade.

The Strait has returned to international focus after Israel launched missile strikes on Iran last Friday, raising fears of potential Iranian retaliation by shutting down or disrupting passage through the waterway. While many analysts believe that any closure would likely be short-lived due to the strong U.S. and allied naval presence in the Gulf, even a temporary blockage could cause immediate spikes in oil prices and severely strain global supply chains.

“The Strait of Hormuz is, at the end of the day, the artery through which the world’s energy flows,” Sawan said. “If that artery is blocked, for whatever reason, it’ll have a huge impact on global trade.”

In addition to military tensions, Sawan pointed to growing cybersecurity and technological threats in the region’s maritime space. He highlighted increasing cases of electronic system interference that have begun to affect ship navigational tools—raising safety and security concerns for commercial vessels. Just days earlier, two oil tankers collided near the Strait of Hormuz, an incident believed to have been caused by navigational misjudgment possibly linked to signal disruptions.

Sawan also acknowledged that while oil prices have not yet reacted dramatically—remaining relatively stable since the Israeli strikes—this could change rapidly if oil infrastructure is damaged or if shipping lanes are obstructed. Traders, he said, appear to be waiting for concrete evidence of disruption before making major market moves.

The Shell CEO’s remarks reflect a broader unease in the energy sector, where supply security, logistical stability, and geopolitical risks are once again in sharp focus. With the Middle East remaining a critical node in the global energy web, companies and governments alike are bracing for potential fallout if the current tensions deepen into open conflict.

Sawan’s comments come as oil companies around the world reassess their risk exposure and reroute shipments where possible. Some have already reduced their maritime footprint in high-risk zones or increased their reliance on military escorts and alternative shipping paths.

As the situation develops, Shell and other energy majors are expected to maintain heightened vigilance, balancing business continuity with the safety of their assets, employees, and infrastructure in one of the world’s most strategically sensitive regions.