Shell CEO warns Strait of Hormuz blockade could cause energy shortages into 2027energy shortages into 2027

Shell CEO Wael Sawan warned that the ongoing blockade of the Strait of Hormuz, now in its fourth week amid the West Asia conflict, will likely cause oil and LNG shortages to persist for months and possibly into 2027. The disruption has already reduced global oil supply by 20 million barrels per day, doubled jet fuel prices, and led some Asian countries to ration energy. Europe faces fuel shortages as early as next month, with diesel and road fuels at risk during peak driving season.

This crisis threatens national security by linking energy supply directly to economic stability, potentially driving oil prices above $100 or even $150 and sparking a sharp recession. Shell is coordinating with governments on demand management, storage, and supply routes to mitigate the ripple effects hitting refineries and shipping. Over half the world's refineries depend on Middle Eastern crudes, amplifying the global impact.