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Energy Crisis · Geopolitics · Oil Prices · Recession Risk
Shell CEO Wael Sawan warned on March 25, 2026, that Europe faces a severe energy and fuel shortage by April if the Strait of Hormuz remains closed, a crisis that has already led to energy rationing in Asian countries and doubled jet fuel prices.
The crisis, now in its fourth week, has seen oil prices fluctuate, dipping to $100 a barrel from $114 earlier in the week following reports of a US peace plan. Sawan stated that jet fuel prices have doubled, and diesel and petrol will face pressure as the US and Europe enter the summer driving season.
Germany's economy minister, Katherina Reiche, echoed these warnings, suggesting scarcity by late April or May and regretting Germany's nuclear phase-out. BlackRock CEO Larry Fink warned that prolonged conflict driving oil to $150 a barrel would cause a "stark and steep recession," contrasting with a scenario where resolution returns prices to $70.
A British government spokesperson affirmed the UK's diverse energy supply.
European natural gas prices rose as the escalating conflict in the Middle East heightened concerns over LNG availability.
