AsianFin -- Shell Plc Chief Executive Officer Wael Sawan cautioned that any disruption to the Strait of Hormuz—a critical chokepoint for global oil and gas shipments—would have profound consequences for international trade, as geopolitical tensions escalate in the Middle East.

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

As one of the world’s largest energy traders, Shell has contingency strategies in place should the conflict between Israel and Iran escalate further and threaten key shipping lanes, particularly the narrow strait through which roughly a fifth of global oil passes.

The energy market remains on edge amid fears that worsening hostilities—possibly drawing in the U.S.—could trigger a supply shock. While crude prices have risen in recent weeks, energy flows from the region have so far remained uninterrupted. Still, traders and oil majors are bracing for potential volatility ahead.