Europe could face fuel shortages within weeks as disruption in the Middle East tightens global energy supplies, according to Shell.
Chief executive Wael Sawan warned that supply pressures are already forcing parts of Asia to curb energy use, with the impact expected to reach Europe imminently.
“It is a ripple effect,” he said. “We see south Asia first to get that brunt, that moves to south-east Asia, north-east Asia and then more so into Europe as we get into April.
“So we are trying to work with governments to alert them to the levers they may need to pull – including demand-side measures, what they need to do around storage, what they need to do around purchasing stock and so on and so forth.”
Around one fifth of global oil and LNG supplies remain trapped in the Gulf following Iran’s closure of the Strait of Hormuz, driving a sharp rise in prices and intensifying competition for cargoes.
Asian economies have already introduced measures such as reduced working weeks and limits on energy use, while European governments may soon face similar decisions.
The International Energy Agency has urged countries to cut consumption through measures including remote working and reduced travel.
Markets have reacted sharply, with oil and gas prices rising by 40% and 60% respectively in the past month. Analysts warn that a prolonged shock could push the UK towards recession, with higher fuel costs already impacting households and businesses.
While the UK Government said energy supplies remain “diverse and resilient”, industry sources cautioned that shortages remain a worst-case scenario if the conflict persists into the summer.
In the near term, experts expect policymakers to prioritise softer demand measures, such as speed restrictions and home-working guidance, before considering more direct intervention in fuel supplies.