Speaking at an industry conference in Tokyo on Thursday, Shell CEO Wael Sawan said the company is monitoring the situation closely, especially in light of mounting uncertainty around the Israel-Iran confrontation and the potential for broader regional escalation.
“The escalation in tensions over the last few days has added to what has already been significant uncertainty in the region,” Sawan said. “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.”
The Strait of Hormuz—a narrow but vital passage that handles roughly 20% of the world’s oil and fuel shipments—has become a particular focus of concern. Sawan highlighted the vulnerability of the strait to disruptions and emphasized the potential global ramifications if its flow were impeded.
“The Strait of Hormuz is, at the end of the day, the artery through which the world’s energy flows,” he said. “If that artery is blocked, for whatever reason, it’ll have a huge impact on global trade.”
One emerging issue, Sawan noted, is the increase in electronic interference targeting commercial shipping navigation systems. Though he did not attribute responsibility, such interference has previously been linked to regional actors, complicating the safe passage of vessels through already volatile waters.
Oil prices have been rising steadily throughout the week as traders price in the risk of supply disruptions. Brent crude recently reached a two-month high, although Sawan described the price movement as "moderate" so far. Much of the market, he said, is still waiting to see whether the conflict causes physical damage to energy infrastructure.
Adding to the uncertainty, U.S. President Donald Trump has yet to clarify whether the United States will join Israel militarily. The ambiguity is adding pressure to global markets and prompting multinational firms like Shell to consider contingency plans.
“We’re watching very closely what happens from here and have plans in place should things deteriorate,” Sawan said.
With the region on edge and energy corridors under threat, Shell’s caution underscores the broader challenge facing oil and gas firms operating in geopolitically sensitive zones. While no major disruptions have occurred so far, the stakes remain high—for global energy markets, for international trade, and for companies navigating an increasingly unstable landscape.