The escalating conflict between Israel and Iran has raised concerns among top oil executives about potential disruptions to global energy supplies and prices. Despite a declared ceasefire by U.S. President Donald Trump, doubts remain about its durability, as Iranian media denied the agreement and Israel’s defense minister vowed to respond “forcefully” if needed. Oil prices initially fell sharply on news of the ceasefire but later pared losses as uncertainty persisted.
Brent crude, the global benchmark, traded around 2% lower at $69.38 a barrel, its lowest since June 12. Financial markets, including the FTSE 100 and other global indices, edged higher on hopes that the conflict would not disrupt oil supplies. However, airline and travel stocks rose while oil stocks took a hit.
Oil executives express supply concerns
Airlines continue to halt some flights to the Middle East due to safety concerns. Experts warn that if Iran decides to block the Strait of Hormuz, a key trade route for global crude oil, prices could spike significantly.
Shell CEO Wael Sawan expressed concerns over navigating the escalating situation, stating, “How we navigate over the coming days and weeks is particularly top of mind for myself and the leadership team.” TotalEnergies CEO Patrick Pouyanné emphasized the safety of regional employees as his primary concern amidst the tensions. The conflict has heightened fears of significant supply disruptions, particularly in worst-case scenarios. Amjad Bseisu, CEO of U.K.-based EnQuest, described 2025 as “the year of volatility” but noted that the market is well-supplied in the short to medium term.
The ongoing conflict between Israel and Iran remains a critical issue with potentially far-reaching consequences for global oil markets. As U.S. Secretary of State Marco Rubio called on China to prevent Iran from closing the Strait of Hormuz, American consumers may soon feel a price shock at the pump if the situation escalates further.
