Israel and Iran have been exchanging strikes in recent days, raising concerns among top oil executives about the potential impact on global energy supply and prices. Shell CEO Wael Sawan described the last 96 hours as “very concerning” and emphasized the need to navigate the situation carefully given the company’s significant footprint in the Middle East. TotalEnergies CEO Patrick Pouyanné expressed similar worries, hoping that further strikes would not target oil installations due to the potential hazards and global market repercussions.
As the largest international oil company in the region, TotalEnergies has operations in Iraq, Abu Dhabi, Qatar, and Saudi Arabia. The escalating conflict has led some shipowners to divert from the Strait of Hormuz, a critical waterway for global oil transport.
Oil executives express growing concerns
Any disruption in this area could increase global energy prices and create significant supply delays. However, market watchers are skeptical that Iran will close the waterway, suggesting it may even be physically impossible. Amjad Bseisu, CEO of U.K.-based EnQuest, described 2025 as “the year of volatility” and emphasized the need for a quick end to the conflict for the benefit of overall markets.
Despite the concerns, Bseisu believes that the market is well supplied in the short to medium term. As the situation continues to unfold, oil traders are closely monitoring developments, considering the Israel-Iran conflict to be the most significant geopolitical event since Russia’s invasion of Ukraine in 2022. While key oil and gas infrastructure and flows have so far been spared, the potential for major supply disruption remains a key concern, particularly in worst-case scenarios such as Iran blocking the Strait of Hormuz.