Britain and Europe could face a fuel crisis within weeks due to the ongoing conflict in the Middle East, according to Shell’s CEO, Wael Sawan.
He stated that the rising pressure on global energy supplies is already causing countries in Asia to reduce consumption, and Europe could start feeling the impact as early as next month.
Sawan warned that governments might need to restrict energy demand for the first time in nearly four years, raising concerns about potential shortages if the situation worsens.
He told a conference in Houston, Texas: “We see south Asia first to get that brunt, that moves to southeast Asia, northeast Asia and then more so into Europe as we get into April.
“So we are trying to work with Governments to alert them to the levers they may need to pull – including demand‑side measures, what they need to do around storage, what they need to do around purchasing stock and so on and so forth.”
This warning comes amid market turmoil following Iran’s closure of the Strait of Hormuz, a critical passage for about 20% of the world’s oil and gas supplies, resulting in prices soaring by as much as 60% in just a month.
While Whitehall sources have asserted that Britain’s energy system remains “resilient,” contingency plans are being prepared due to concerns that the crisis could escalate rapidly.
Reports suggest that the Royal Navy is considering deploying civilian “motherships” equipped with drones to clear Iranian mines from this vital shipping route.
Industry insiders have indicated that the scenario outlined by Shell represents a “worst-case” situation, but one that is “absolutely possible” if disruptions continue.
Currently, supplies remain stable; however, rising costs could soon compel households and businesses to ration their energy usage.
In extreme circumstances, ministers could even take control of fuel supplies if the crisis deepens further.
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