-- Shell (SHEL) CEO Wael Sawan said the global oil market faces a shortage of nearly 1 billion barrels of crude due to the ongoing Iran conflict, warning that the supply deficit is "deepening every single day."
Speaking during Shell's first-quarter earnings call on Thursday, Sawan said the market has lost significant volumes either through "locked-in barrels or unproduced barrels," adding that the recovery process would take time.
He said Shell was already seeing the impact across the refining market, with some demand destruction emerging in sectors such as aviation.
Sawan added that the extent of future demand weakness remained uncertain and would depend on how the conflict evolved in coming months.
The comments come as disruptions linked to the Iran conflict continue to tighten global crude and fuel markets, particularly around the Strait of Hormuz, a key route for oil and LNG shipments.
Shell executive said up to 15% of global crude supplies have been disrupted by the conflict.