Top oil CEOs sound the alarm as Israel-Iran strikes escalate
Top oil executives are sounding the alarm over the escalating conflict between Israel and Iran.
The CEOs of TotalEnergies, Shell, and EnQuest told CNBC on Tuesday that further attacks on critical energy infrastructure could have serious consequences for global supply and prices.
Israel's surprise attack on Iran's military and nuclear infrastructure on Friday has been followed by four days of spiraling warfare between the regional foes.
Some oil and gas facilities have been hit in both countries in recent days, although key energy infrastructure and crude flows have so far been spared.
The potential for major supply disruption remains a key concern, however, particularly worst-case scenarios such as Iran blocking the highly strategic Strait of Hormuz.
'The last 96 hours have been very concerning … both for the region but more broadly in terms of where the global energy system is going given the uncertainty and the backdrop that we see right now and the geopolitical volatility,' Shell CEO Wael Sawan told CNBC's JP Ong on Tuesday.
Speaking at the Energy Asia conference in Kuala Lumpur, Malaysia, Shell's Sawan said the London-listed company has a 'significant footprint' in the Middle East, both in terms of operated assets and shipments.
'How we navigate over the coming days and weeks, the situation is something that is particularly top of mind for myself, and the leadership team,' Sawan said.
Oil prices traded higher on Tuesday, extending recent gains.
International benchmark Brent crude futures with August stood at $75.41 per barrel at 4:16 p.m. London time, up around 3%. U.S. West Texas Intermediate futures with July delivery, meanwhile, was last seen up 2.7% at $73.74.
Oil traders see the Israel-Iran conflict as the most significant geopolitical event since Russia launched its full-scale invasion of Ukraine in 2022.
TotalEnergies CEO Patrick Pouyanné said the French oil giant's primary concern amid Israel-Iran tensions is the security of its regional employees.
'We are the largest international oil company in the region. We were born 100 years ago in Iraq, and we still have operations in Iraq, Abu Dhabi, Qatar and Saudi Arabia,' Pouyanné told CNBC on the sidelines of the same event.
Pouyanné said he hoped further strikes would not concern oil installations 'because this could become a real problematic hit, not only in terms of safety and hazards and risks, but also in terms of global markets.'
As Israel and Iran continue to exchange strikes, some shipowners have started to steer clear from the Strait of Hormuz.
The waterway, which connects the Persian Gulf to the Arabian Sea, is recognized as one of the world's most important oil chokepoints.
The inability of oil to traverse through the Strait of Hormuz, even temporarily, can ratchet up global energy prices, raise shipping costs and create significant supply delays.
Market watchers remain skeptical that Iran will seek to close the waterway, however, suggesting it might even be physically impossible.
Amjad Bseisu, CEO of U.K.-based EnQuest, described 2025 as 'the year of volatility.'
'It's almost like every day we see something different but obviously this war between Israel and Iran is another step up,' Bseisu told CNBC on Tuesday.
'The quicker we can come to an end of this terrible conflict, the better for overall markets but I do think that the market is well supplied in the short to medium term,' he added.
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The Advertiser
an hour ago
- The Advertiser
'Don't panic': minimal impact on fuel prices amid Middle East conflict
AMID conflict in the Middle East, NRMA has urged drivers not to fear that fuel prices may rise. Since the heated Iran-Israel conflict unfolded on Friday, the price of oil and fuel has jumped two cents, but NRMA spokesperson Peter Khoury says it's not a matter of concern for Aussie commuters. "We don't want Australians to panic. We look at these things very closely. We're passing on information as it occurs from the Middle East, but we don't want people to panic, the numbers just aren't there yet," he said. Mr Khoury said that prices fluctuate with any flare-up in the Middle East. He said oil prices went up about $6 a barrel. "The wholesale price has gone up about two or three cents per litre. It's still $1.60, so we're not seeing a huge change in the oil price, certainly after Friday," he said. "That's not to say that we aren't keeping a close eye on it. It's the Middle East, anything can happen." Regular unleaded in Dungog cost $1.81 on Tuesday. In Maitland, it was selling for $1.77 per litre, $1.78 in Newcastle and $1.87.8 in Singleton. "Diesel's not too far off those prices in the 170s, 180s. In Scone, it's $1.69, which is one of the better prices in the state," Mr Khoury said. He said the price jump wasn't vast despite everything that has unfolded and reminded drivers not to panic. "These numbers do not suggest even remotely that Australians should be panicking and flooding the service stations trying to fill up.," he said. He encouraged people to research before fuelling up and utilise apps and websites to find the cheapest fuel. "In all those towns, there is a spread of price differences and a gap between the cheapest and the most expensive service stations," he said. Maitland's cheapest was $1.56 and the most expensive was $2 per litre. In Newcastle, the gap between the cheapest and the most expensive was almost the same, Mr Khoury said. AMID conflict in the Middle East, NRMA has urged drivers not to fear that fuel prices may rise. Since the heated Iran-Israel conflict unfolded on Friday, the price of oil and fuel has jumped two cents, but NRMA spokesperson Peter Khoury says it's not a matter of concern for Aussie commuters. "We don't want Australians to panic. We look at these things very closely. We're passing on information as it occurs from the Middle East, but we don't want people to panic, the numbers just aren't there yet," he said. Mr Khoury said that prices fluctuate with any flare-up in the Middle East. He said oil prices went up about $6 a barrel. "The wholesale price has gone up about two or three cents per litre. It's still $1.60, so we're not seeing a huge change in the oil price, certainly after Friday," he said. "That's not to say that we aren't keeping a close eye on it. It's the Middle East, anything can happen." Regular unleaded in Dungog cost $1.81 on Tuesday. In Maitland, it was selling for $1.77 per litre, $1.78 in Newcastle and $1.87.8 in Singleton. "Diesel's not too far off those prices in the 170s, 180s. In Scone, it's $1.69, which is one of the better prices in the state," Mr Khoury said. He said the price jump wasn't vast despite everything that has unfolded and reminded drivers not to panic. "These numbers do not suggest even remotely that Australians should be panicking and flooding the service stations trying to fill up.," he said. He encouraged people to research before fuelling up and utilise apps and websites to find the cheapest fuel. "In all those towns, there is a spread of price differences and a gap between the cheapest and the most expensive service stations," he said. Maitland's cheapest was $1.56 and the most expensive was $2 per litre. In Newcastle, the gap between the cheapest and the most expensive was almost the same, Mr Khoury said. AMID conflict in the Middle East, NRMA has urged drivers not to fear that fuel prices may rise. Since the heated Iran-Israel conflict unfolded on Friday, the price of oil and fuel has jumped two cents, but NRMA spokesperson Peter Khoury says it's not a matter of concern for Aussie commuters. "We don't want Australians to panic. We look at these things very closely. We're passing on information as it occurs from the Middle East, but we don't want people to panic, the numbers just aren't there yet," he said. Mr Khoury said that prices fluctuate with any flare-up in the Middle East. He said oil prices went up about $6 a barrel. "The wholesale price has gone up about two or three cents per litre. It's still $1.60, so we're not seeing a huge change in the oil price, certainly after Friday," he said. "That's not to say that we aren't keeping a close eye on it. It's the Middle East, anything can happen." Regular unleaded in Dungog cost $1.81 on Tuesday. In Maitland, it was selling for $1.77 per litre, $1.78 in Newcastle and $1.87.8 in Singleton. "Diesel's not too far off those prices in the 170s, 180s. In Scone, it's $1.69, which is one of the better prices in the state," Mr Khoury said. He said the price jump wasn't vast despite everything that has unfolded and reminded drivers not to panic. "These numbers do not suggest even remotely that Australians should be panicking and flooding the service stations trying to fill up.," he said. He encouraged people to research before fuelling up and utilise apps and websites to find the cheapest fuel. "In all those towns, there is a spread of price differences and a gap between the cheapest and the most expensive service stations," he said. Maitland's cheapest was $1.56 and the most expensive was $2 per litre. In Newcastle, the gap between the cheapest and the most expensive was almost the same, Mr Khoury said. AMID conflict in the Middle East, NRMA has urged drivers not to fear that fuel prices may rise. Since the heated Iran-Israel conflict unfolded on Friday, the price of oil and fuel has jumped two cents, but NRMA spokesperson Peter Khoury says it's not a matter of concern for Aussie commuters. "We don't want Australians to panic. We look at these things very closely. We're passing on information as it occurs from the Middle East, but we don't want people to panic, the numbers just aren't there yet," he said. Mr Khoury said that prices fluctuate with any flare-up in the Middle East. He said oil prices went up about $6 a barrel. "The wholesale price has gone up about two or three cents per litre. It's still $1.60, so we're not seeing a huge change in the oil price, certainly after Friday," he said. "That's not to say that we aren't keeping a close eye on it. It's the Middle East, anything can happen." Regular unleaded in Dungog cost $1.81 on Tuesday. In Maitland, it was selling for $1.77 per litre, $1.78 in Newcastle and $1.87.8 in Singleton. "Diesel's not too far off those prices in the 170s, 180s. In Scone, it's $1.69, which is one of the better prices in the state," Mr Khoury said. He said the price jump wasn't vast despite everything that has unfolded and reminded drivers not to panic. "These numbers do not suggest even remotely that Australians should be panicking and flooding the service stations trying to fill up.," he said. He encouraged people to research before fuelling up and utilise apps and websites to find the cheapest fuel. "In all those towns, there is a spread of price differences and a gap between the cheapest and the most expensive service stations," he said. Maitland's cheapest was $1.56 and the most expensive was $2 per litre. In Newcastle, the gap between the cheapest and the most expensive was almost the same, Mr Khoury said.
SBS Australia
an hour ago
- SBS Australia
Reports the US is boosting its military presence in the Middle East
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SBS Australia
an hour ago
- SBS Australia
Donald Trump demands Iran's 'unconditional surrender', as Israel-Iran strikes continue
US President Donald Trump has called for Iran's "unconditional surrender". Trump said there is no intention to kill Iran's Supreme Leader Ayatollah Ali Khamenei "for now". Iranian officials said 224 people have been killed, while Israel said 24 civilians had been killed in the attacks. United States President Donald Trump has called for Iran's "unconditional surrender" but said there is no intention to kill its supreme leader "for now" as Israel and Iran traded missile strikes for the sixth day in a row. Meanwhile, Israeli defence minister Israel Katz said Iran's Supreme Leader, Ayatollah Ali Khamenei could face the same fate as former Iraqi President Saddam Hussein, who was toppled in a US-led invasion and hanged in 2006 after a trial. The Israeli military said two barrages of Iranian missiles were launched toward Israel in the first two hours of Wednesday morning. Explosions were also heard over Tel Aviv. Israel told residents in the area of Tehran to evacuate so its air force could strike Iranian military installations. Iranian news websites said explosions were heard in Tehran and the city of Karaj west of the capital. Explosions were reported in Tehran and the city of Isfahan in central Iran. Iranian officials said 224 people have been killed, mostly civilians, while Israel said 24 civilians had been killed. The Israeli military said it had conducted strikes on 12 missile launch sites and storage facilities in Tehran. Trump warned that US patience with Iran was "wearing thin" and that "we know exactly where the so-called "Supreme Leader" is hiding," in a post on Truth Social on Tuesday. Three minutes later, he followed up with: "UNCONDITIONAL SURRENDER!" Trump's sometimes contradictory and cryptic messaging about the conflict between close US ally Israel and longtime foe Iran has deepened the uncertainty surrounding the crisis. A White House official said Trump spoke to Israeli Prime Minister Benjamin Netanyahu by phone on Tuesday after meeting with his national security team about the escalating Middle East conflict. No further details regarding what was discussed during the call were made public. Trump said earlier this week he might send US Middle East envoy Steve Witkoff or vice president JD Vance to meet with Iranian officials. He maintained his early departure from the G7 summit in Canada had "nothing to do" with working on a ceasefire deal, and that something "much bigger" was expected. Vance said the decision on whether to take further action to end Iran's uranium enrichment program, which Western powers suspect is aimed at developing a nuclear bomb, "ultimately belongs to the president". The US is deploying more fighter aircraft to the Middle East and extending the deployment of other warplanes, three US officials told Reuters. The US has so far only taken defensive actions in the conflict, including helping to shoot down missiles fired towards Israel. Khamenei's main military and security advisers have been killed by Israeli strikes, leaving major holes in his inner circle and raising the risk of strategic errors, according to five people familiar with his decision-making process. With Iranian leaders facing their most significant security breach since the 1979 Islamic Revolution, the country's cybersecurity command has banned officials from using communication devices and mobile phones, according to Fars News Agency. Israel launched a "massive cyber war" against Iran's digital infrastructure, Iranian media reported. From October 2023, Khamenei's regional influence has waned as Israel has pounded Iran's proxies — from Hamas in Gaza to Hezbollah in Lebanon, the Houthis in Yemen and militias in Iraq. Israel launched its air war, its largest ever, on Iran on Friday after saying it had concluded the Islamic Republic was on the verge of developing a nuclear weapon. Iran denies seeking nuclear weapons and has pointed to its right to nuclear technology for peaceful purposes, including enrichment, as a party to the international Non-Proliferation Treaty (NPT). Israel, which is not a party to the NPT, is the only country in the Middle East believed to have nuclear weapons. Israel does not deny or confirm that. Israeli Prime Minister Benjamin Netanyahu has stressed he will not back down until Iran's nuclear development is disabled, while Trump says the Israeli assault could end if Iran agrees to strict curbs on enrichment. Before Israel's attack started, the 35-nation board of governors of the United Nations nuclear watchdog, the International Atomic Energy Agency (IAEA), declared Iran in breach of its non-proliferation obligations for the first time in almost 20 years. The IAEA said an Israeli strike directly hit the underground enrichment halls at the Natanz facility. Israel said it now has control of Iranian airspace and intends to escalate the campaign in the coming days. Iran has so far fired nearly 400 ballistic missiles and hundreds of drones towards Israel, with about 35 missiles penetrating Israel's defensive shield and making impact, Israeli officials said. Iran's Revolutionary Guards said they had hit Israel's military intelligence directorate and foreign intelligence service Mossad's operational centre.
