Iran War Threatens Global Energy Supply as Shell and TotalEnergies Warn of Prolonged Crisis

KUALA LUMPUR,– The ongoing conflict involving Iran is raising serious concerns among global energy leaders, with executives from Shell and TotalEnergies warning of a prolonged disruption to global oil and fuel supply.

The crisis is centered around the strategically vital Strait of Hormuz, a critical maritime route responsible for transporting nearly 20% of the world’s oil supply.

Energy Supply at Risk

The conflict has significantly disrupted shipping activities in the Strait of Hormuz, causing delays, rising insurance costs, and a sharp decline in tanker traffic. At one point, oil shipments through the route dropped drastically as vessels avoided the high-risk zone.

Executives warn that if disruptions continue for more than three to four months, the situation could escalate into a systemic global economic risk.

Impact on Global Markets

According to industry leaders:

• Fuel shortages could begin spreading from Asia to Europe
• Prices for jet fuel, diesel, and gasoline are already rising
• Supply chain disruptions are worsening across regions

The war has already caused oil prices to surge above US$100 per barrel, with fears of further increases if the conflict intensifies or the Strait remains restricted.

A Global Energy Shock

Analysts describe the current disruption as one of the largest energy supply shocks in modern history, affecting not only oil but also liquefied natural gas (LNG) and even fertilizer supply chains.

With geopolitical tensions still high, global markets remain on edge as governments and energy companies scramble to secure alternative supply routes and stabilize prices.