Eni CEO warns energy crisis may worsen as Hormuz disruption deepens

Eni ↘ 0.77% Chief Executive Officer Claudio Descalzi warned on Friday that the global energy crisis could deteriorate further in the near term, as declining oil inventories and intensifying competition for supplies put additional strain on markets already reeling from months of disruption in the Strait of Hormuz.

"In the short term, it's possible" that the energy crisis worsens, Descalzi told Italian daily Il Sole 24 Ore, according to Bloomberg.bloomberg

Strait of Hormuz Tensions Escalate

Descalzi's comments arrive at a moment of renewed volatility in the Persian Gulf. The U.S. military launched multiple rounds of strikes against Iranian military targets along the country's southern coastline on July 7 and 8, targeting air defense systems, coastal radars, anti-ship missile positions, and naval infrastructure. U.S. Central Command said the strikes were intended "to further degrade their ability to threaten freedom of navigation in the Strait of Hormuz".centcom+2

The waterway, through which roughly 20 million barrels of oil per day flowed before the conflict, has been subject to what the International Energy Agency described as a "double-blockade," with both Iran and the United States restricting vessel passage at various points since hostilities began in late February. As of July 11, President Donald Trump said the U.S. and Iran had agreed to continue talks but declared the earlier ceasefire "over".reuters+2

A Market Under Sustained Pressure

The disruption has already reshaped global energy markets. A May analysis by the Brookings Institution estimated that by mid-July, temporary supply buffers would be exhausted, leaving the market short roughly 7.1 million barrels per day — about 16 percent of global supply. The IEA's executive director, Fatih Birol, called the situation "the biggest energy security threat in history" in April, noting the world was then losing about 13 million barrels per day of supply.brookings+1

Descalzi, who was reappointed to a record fifth term as Eni's CEO in April, has previously urged the European Union to delay its planned ban on Russian liquefied natural gas imports, arguing the phaseout would further tighten supplies during an already strained period.brusselssignal+2

Outlook Remains Uncertain

Descalzi is scheduled to appear before Italy's Chamber of Deputies on July 16 to discuss the energy market outlook for Italy and Europe. His warning adds to a chorus of concern from energy industry leaders about the fragility of supply chains as diplomatic efforts between Washington and Tehran remain inconclusive.aljazeera+2