Wael Sawan, chief executive of Shell, has warned that Europe could face serious fuel and energy shortages as early as next month if the Strait of Hormuz is not reopened.
He said the company is working closely with governments to address the supply crisis, which has already led to energy rationing in parts of Asia. Oil prices have dropped to around $100 per barrel—down from $114 earlier in the week—following reports of a 15-point peace plan from the White House regarding Iran.
Without the resumption of supplies from the Gulf through Hormuz, Europe could face fossil fuel shortages within weeks, Sawan stressed. He warned that the crisis has already pushed up jet fuel prices and could soon impact diesel and gasoline, particularly as the summer driving season begins.
Meanwhile, Katherina Reiche also cautioned that supply shortages could hit by late April or May. She added that Germany’s decision to phase out nuclear energy was a mistake and that large-scale gas imports will now be essential.
Larry Fink, head of BlackRock, warned that if Iran remains a threat and oil prices stay elevated, the world could face years of oil prices between $100 and $150 per barrel—potentially triggering a deep global recession.
