Shell Plc, one of the world’s largest oil and natural gas traders, has developed contingency plans in case the conflict between Israel and Iran leads to supply disruptions in the region, warning that a blockade of the Strait of Hormuz would be a “major shock to the markets.”

"If this artery is blocked for any reason, it will have a huge impact on global trade," said Wael Sawan, CEO of the Japan Energy Summit and Exhibition in Tokyo. "We have contingency plans in case the situation worsens."

“If that artery is blocked, for whatever reason, it has a huge impact on global trade,” Chief Executive Officer Wael Sawan said at the Japan Energy Summit & Exhibition in Tokyo. “We have plans in the eventuality that things deteriorate.”

About a quarter of the world’s oil trade passes through the Strait of Hormuz, which links the Persian Gulf to the Indian Ocean.