Shell remains vigilant amid Middle East tensions

Amid the increasing tensions between Israel and Iran, oil and gas giant Shell is extremely cautious with its shipping operations in the region. CEO Wael Sawan emphasized at an industry conference in Tokyo that the escalation of recent days has further intensified the already significant uncertainty. These developments raise the question of whether the USA, under the leadership of President Donald Trump, will intervene in the conflict. Sawan explained that Shell has taken special precautions regarding shipping to avoid unnecessary risks. The strategically important Strait of Hormuz, through which about 20 percent of global oil transportation occurs, is under special observation. He highlighted that electronic disruptions could significantly impair the navigation of commercial ships. The CEO warned that the closure of this crucial waterway, for any reason, would have massive impacts on global trade. While oil and gas prices have risen moderately in recent days, it remains to be seen whether the physical infrastructure could be at risk. Shell has prepared emergency plans should the situation escalate and a military intervention by the USA be imminent. Oil prices reached their highest levels in more than two months at the beginning of this week.