Shell is taking extra precautions with its shipping operations in the Middle East due to escalating conflict between Israel and Iran, CEO Wael Sawan said Thursday.
Speaking at an industry conference in Tokyo, Sawan warned that the conflict, now in its seventh day, has intensified uncertainty in a region critical to global energy flows. Around 20 per cent of the world’s oil and fuel pass through the Strait of Hormuz, where Shell has observed increasing electronic interference affecting commercial ship navigation.
Sawan noted that while oil and gas prices have risen to their highest levels in over two months, the uptick has been moderate as markets await potential impacts on physical infrastructure. He added that Shell is monitoring the situation closely and has contingency plans in place should U.S. military involvement escalate.
Attribution: Reuters
Subediting: M. S. Salama