Shell PLC (LSE:SHEL, NYSE:SHEL) has reportedly prepared emergency measures to safeguard its energy operations if rising tensions between Israel and Iran lead to disruption in the Middle East.
According to news wire reports, CEO Wael Sawan warned that any closure of the Strait of Hormuz, a key route for global oil shipments, would have a significant effect on trade.
Speaking at an energy conference in Tokyo, Sawan said the company is monitoring the situation closely, especially given the increasing use of signal jamming around the Persian Gulf.
Around 25% of global oil trade passes through the strait, making it a critical chokepoint.
Shares in the Anglo-Dutch giant were up 1% in early trading, mirroring the rise in Brent crude, which moved above $77 a barrel in early trading.