As the conflict in the middle -east intensifies, Shell PLC SHELL CEO Wael Sawan Warnings of possible consequences for global trade, especially if the US becomes involved.
What happened: Sawan, during Japan Energy Summit and exhibition 2025, expressed their concern about the escalating conflict between Israel and Iran, which states that it could have a “enormous impact on world trade”. Shell, a leading global oil and natural gas trader, has already devised unforeseen plans to prevent possible possible disruption in the oil flow of the region as a result of the conflict, reported Connects by energy.
Sawan emphasized the strategic importance of the Strait van Hormuz, an important artery for the oil trade in the world, at an energy conference in Tokyo. He warned that a blockade in the street could steer shock waves on the energy market. The CEO noted that 20% of the world oil of the world oil comes through Hormuz and finding an “alternative” would be a challenge.
“If that artery is blocked, for whatever reason, it has a huge impact on world trade … We have plans in the possibility that things are deteriorating,” Sawan said according to Guardian.
He also expressed his concern about potential “jamming” or disruption of navigation signals in and around the Persian Gulf.
Sawan expressed his opinion about the changing world order and its impact on the energy markets. “We have to set actions for a new reality.”
Meanwhile, US President Donald Trump suggested that the US could intervene in the air war between Israel and Iran. This development further strengthens the potential impact of the conflict on world trade.
See also: Trump Greenlights Iran Attack Plans, wait for Tehran’s next move for the last order: report
Why it matters: The Israel-Iran conflict is escalating, in which both countries deal with military actions. This conflict has the potential to disrupt the global oil market, which not only influences oil prices, but also the global trade and economies.
Earlier this month, analysts suggested that the Israel-Iran conflict could lead to increased volatility in the prices of crude oil, in favor of companies such as Shell. This prediction corresponds to Sawan’s warning about the potential impact of the conflict on world trade, which further emphasizes the meaning of the situation.
Shell has been actively involved in the oil and gas industry and recently expanded his Nigerian deep water activa through a strategic acquisition. The share performance of the company is closely linked to the global dynamics of the oil market, making the Israel-Iran conflict a critical factor for investors to check.
Brent raw oil prices have risen 8.72% in the midst of escalating conflict over the past five days.
On an annual basis, shares of Shell rose with 14.10%, according to data from Benzinga Pro.
Image via Shutterstock
Indemnification: This content was partially produced with the help of AI tools and was assessed and published by Benzinga Editors.
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