Shell CEO Wael Sawan stated on Thursday that the oil and natural gas giant was "very cautious" about its shipping through Middle East due to the escalating conflict in the Middle East between Israel and Iran.

Thursday, the Iran-Israel air conflict entered its seventh day. President Donald Trump kept the world guessing as to whether the United States would join the fight.

He told an industry meeting in Tokyo that the escalation of tensions in recent days has added to the already significant level of uncertainty in the area.

We are very cautious with our shipping, for instance, in the area, to ensure that we don't take unnecessary risks.

Around 20% of oil and fuel in the Middle East flows through the Strait of Hormuz. Sawan noted that the electronic interference was a major problem, as it disrupted the navigation systems of commercial ships.

He said: "The Strait of Hormuz, at the end of it all, is the artery that flows the world's electricity. If this artery were to be blocked for any reason, there would be a major impact on the global trade."

Sawan stated that the recent rise in gas and oil prices has been "moderate", as investors are waiting to see if physical infrastructure is damaged. This week, oil prices reached their highest level in over two months.

Shell closely monitors the possibility of U.S. Military action, and has plans ready should things worsen. (Reporting and editing by Kathleen Benoza, John Geddie and Muralikumar Anantharaman).

(source: Reuters)