Global Energy CEOs Warn of Crisis Due to Iran War
Several of the world’s largest energy companies have warned of a serious threat to the global economy as the Iran war begins to disrupt oil and gas supplies on a massive scale, described as the worst crisis since the 1973 oil embargo.
Citing CNBC, Sunday (29/3/2026), the CEOs of the world’s most influential oil and gas companies delivered strong warnings at the CERAWeek energy conference in Houston, Texas, organised by S&P Global.
They assessed that the current market has not yet fully reflected the scale of energy supply disruptions due to the intensifying conflict.
Asia and Europe will face fuel shortages if the war drags on, the executives stated. Oil prices are likely to remain high even if the conflict ends, as countries replenish depleted reserves.
The conflict involving Iran, Israel, and the United States, along with attacks on energy facilities in the region, has the potential to significantly reduce oil production. In fact, production cuts in the Middle East are said to reach up to 10 million barrels per day.
“You can’t just remove 8 to 10 million barrels of oil per day and about 20 percent of the liquefied natural gas (LNG) market from the world stage without causing significant impacts,” said ConocoPhillips CEO Ryan Lance to CERAWeek participants.
Iran has essentially imposed an economic blockade on Middle Eastern oil producers by closing the Strait of Hormuz, said CEO of Kuwait Petroleum Corporation, Sheikh Nawaf al-Sabah. The strait is a vital route connecting oil exports from Gulf Arab countries to global markets.
“This is not just an attack on the Gulf region, but an attack that holds the world economy hostage,” said al-Sabah at the conference.
He warned that the war would trigger a domino effect on the global economy. “The cost of this war does not stop at the geographical boundaries of this region,” stated al-Sabah.
“Its impact extends to the entire supply chain,” he explained.
“This is the worst I’ve ever seen,” said Sankey, who began his career at the International Energy Agency in 1990. “We haven’t seen a situation like this, perhaps since 1973. We haven’t seen the Strait of Hormuz closed,” he emphasised.
The executives’ comments contrast with efforts by the Trump administration to calm the turbulent oil industry and market.
US Energy Secretary Chris Wright told CNBC that the market is only facing short-term disruptions. According to him, the price to pay is worth it for the long-term benefits in weakening Iran.
However, the cost is very high for the oil and gas industry, whose assets are now vulnerable to attacks. ConocoPhillips even “begged” the US government to provide military protection for US-owned assets in Qatar worth hundreds of millions of dollars, said Lance.
Iran has forced the closure of the world’s largest LNG centre in Qatar through drone attacks. ConocoPhillips is one of the main investors in that facility.
“We had to evacuate some staff, especially non-essential staff,” said Lance. “That has been heavy work in the last few weeks,” he added.