Europe could face a shortage of energy and fuel as soon as next month if the Strait of Hormuz does not reopen to oil and gas shipping, Shell's chief executive has warned. Wael Sawan, head of Europe's largest oil company, said the crisis was already affecting jet fuel supplies, with diesel and petrol likely to come under pressure next.
Speaking at an oil industry conference in Texas, Sawan noted that South Asia had been hit first, followed by Southeast Asia, Northeast Asia, and now Europe. He warned that without a return of crude deliveries from the Gulf via the crucial Hormuz channel, shortages could occur within weeks.
The warning was echoed by Germany's economy minister, Katherina Reiche, who told the same conference that energy supply scarcity could occur in late April or May if the conflict continued. She described Germany's decision to phase out nuclear energy as a huge mistake and called for greater imports of gas via super-chilled tankers.
Larry Fink, CEO of BlackRock, the world's largest asset manager, warned that prolonged high oil prices could lead to a global recession. In an interview with the BBC, Fink outlined two scenarios: one where oil returns to $70 a barrel, and another where it hits $150, causing a steep recession.
A British government spokesperson said: 'The UK has diverse and resilient energy supply. We continue to work with partners on the international situation.'
