Shell CEO Warns Hormuz Closure Could Create 1.2 Billion-Barrel Oil Shortfall, Prolong Energy Crisis

The Strait of Hormuz is a crucial route for shipping Persian Gulf crude to global markets, and its closure would constrain Middle Eastern oil exports. Shell warned that supply disruptions would not only push up oil prices but could also worsen inflation, business costs and household expenses worldwide, making the closure a major risk to global energy and financial markets.

Shell’s chief executive has warned that if the Strait of Hormuz remains closed, the cumulative global crude-oil shortfall could reach 1.2 billion barrels and energy shortages could persist into 2027. Markets expect continued upward pressure on oil prices and are beginning to examine emerging hedging tools, including Bitcoin and shipping insurance, to mitigate the geopolitical impact.