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Europe Faces Energy Shortages Amid Middle East Conflict, Shell CEO Warns

3/26/2026

Summary

Sawan Warns Shortages

Shell Chief Executive Officer Wael Sawan warned Europe may face energy shortages as early as next month because of the Middle East conflict, urging reopening of the Strait of Hormuz.
The conflict has triggered energy rationing in Asia, with jet fuel supplies affected and prices doubling since it began.
Diesel and gasoline shortages could follow as summer demand peaks, and Sawan urged European governments to prepare and coordinate energy strategies.

Summary

Birol Alerts Energy Crisis

Fatih Birol, head of the International Energy Agency, warned the Iran crisis is worse than the 1973 and 1979 shocks, with 11 million barrels of oil lost daily.
The gas crisis has caused 140 billion cubic meters lost, nearly double Russia's invasion of Ukraine.
A Shell executive said shortages will extend from South Asia to Europe by April.
Shell is collaborating with governments on emergency measures.

History

Historical Context

The 1973 Oil Crisis began when the Organization of Arab Petroleum Exporting Countries (OAPEC) imposed an embargo in response to Western support for Israel during the Yom Kippur War. This led to a 400% increase in oil prices and significant economic turmoil, with the U.S. losing 5 million barrels per day. Today’s energy shortages reflect similar vulnerabilities in global supply chains.

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Sawan Warns Shortages

Shell Chief Executive Officer Wael Sawan warned Europe may face energy shortages as early as next month because of the Middle East conflict, urging reopening of the Strait of Hormuz.
The conflict has triggered energy rationing in Asia, with jet fuel supplies affected and prices doubling since it began.
Diesel and gasoline shortages could follow as summer demand peaks, and Sawan urged European governments to prepare and coordinate energy strategies.

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