Shell’s CEO issues a warning: an interruption in the Strait of Hormuz has led to an oil supply gap amounting to up to 1.2 billion barrels of crude oil, and oil prices may continue to rise

Shell CEO Warns: Hormuz Strait Blockade Causes 1.2 Billion Barrel Oil Shortage, Energy Shortage May Persist Until 2027.
(Background: NATO Warns: If Iran "Blocks Hormuz Strait by July," Will Intervene! International Oil and Gas Prices Surge)
(Additional context: NATO Softens Stance, Supports Hormuz Strait: If Blocked in July, Will Act; Iran Hormuz Safe Bitcoin Shipping Insurance Takes Priority)

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• Chain Reaction of Hormuz Strait Blockade
• Early Signs of Demand Disruption Emerge
• Impact on Taiwan’s Energy Market

Shell CEO Wael Sawan recently warned during an analyst briefing that, due to the Hormuz Strait blockade, the global oil market has already experienced a supply shortfall of over 900 million barrels. If the situation worsens, the shortfall could rise to 1.2 billion barrels.

Chain Reaction of Hormuz Strait Blockade

Sawan pointed out that since March 2026, the Hormuz Strait has been under continuous blockade, hindering oil exports from the Middle East. According to CNBC, Shell CEO stated at the CERAWeek Energy Conference that global oil supply has been about 1 billion barrels below normal levels.

The Hormuz Strait is one of the world’s most critical oil transportation routes, with approximately 17 million barrels of crude oil passing through daily, accounting for about 20% of global oil trade. The blockade has caused oil prices to keep rising, with Brent crude surpassing $75 per barrel.

Early Signs of Demand Disruption Emerge

According to the latest report from Yahoo Finance, Shell has also observed early signs of demand disruption. Jet fuel consumption has decreased, indicating that consumers may be starting to adjust their oil usage habits.

Meanwhile, Bloomberg analysis indicates that Shell’s CEO expects energy shortages to last until 2027, affecting not only the crude oil market but also liquefied natural gas (LNG) supplies.

Impact on Taiwan’s Energy Market

As a major energy importer, Taiwan’s oil self-sufficiency rate is less than 10%. The Hormuz Strait blockade directly raises import costs, impacting electricity prices, freight rates, and inflation. If oil prices continue to rise, energy expenses for households and operational costs for businesses in Taiwan will face greater pressure.

Shell’s CFO also confirmed during the briefing that excess cash flow will be used for share buybacks, demonstrating the energy giant’s optimistic outlook on its cash flow.

This article is sourced from Yahoo Finance, CNBC, Bloomberg reports, translated by Dongqu editor Flip.