economy
March 25, 2026
Head of Shell: Europe Could Run Out of Fuel in Days
Europe could face fuel shortages as early as next month due to the deepening crisis in the Middle East, warned the head of the oil company Shell, Wael Sawan.
TL;DR
- Europe could face fuel shortages next month due to the deepening Middle East crisis.
- Global oil and gas deficit has already forced parts of Asia to reduce energy consumption.
- European governments may need to implement demand reduction measures, a step not taken since the 2022 energy crisis.
- The closure of the Strait of Hormuz has blocked approximately one-fifth of the world's oil and LNG supplies.
- The UK is considering using mine-destroying drones launched from chartered civilian ships to reopen the Strait.
- US President Trump is preparing troops for a possible ground invasion of islands off Iran's coast.
- Vice President J.D. Vance is preparing to act as a negotiator, as Iran refuses talks with US envoys.
- The International Energy Agency has urged countries to reduce oil and gas consumption.
- Asia has already implemented measures like a four-day work week and reduced air conditioning use.
- Oil and gas prices have surged by 40% and 60% respectively in the last four weeks.
- Asian countries are competing with Europe for supplies from the US.
- Energy industry sources consider widespread shortages a 'worst-case but unlikely scenario'.
- A UK energy industry source confirms the scenario is 'one of the worst but still absolutely possible'.
- Prices could rise to a point in June or July where households and businesses self-ration.
- Wall Street bankers warn of recession for the UK if the price shock continues.
- Morgan Stanley suggests the Bank of England might raise interest rates, potentially causing an economic downturn.