KUALA LUMPUR: All the facilities of energy services firm Baker Hughes are operating normally in the Middle East, chief executive Lorenzo Simonelli told Reuters on the sidelines of the Energy Asia conference on Monday.

"Currently, all of our employees are safe, and the facilities continue to run and operate," he said. "Hopefully there's a de-escalation of tensions."

He said that it was still too early to say what impact the fighting between Israel and Iran would have on energy supplies.

"It's a little early, and we've got to monitor the situation," he said.

"What we know is that demand is resilient, and we continue to see strong demand, and ... if there are constraints in supply from one region, it will drive the supply opportunities from other regions," he added.

Baker Hughes has a substantial presence in the Middle East, including an oil services hub in Saudi Arabia. The headquarters of its surface pressure control business are located in Abu Dhabi.

Simonelli said the company would continue to monitor and review routes and ports in the region to ensure safety when shipping equipment and providing services.

"We will not go into a location that is insecure for our employees or also for ... supporting our operations," he said.

The company forecast in April steeper drops in spending by global oil producers as tariffs dent demand expectations and push down crude prices.

Tariffs on steel and aluminium imports to the United States are due to kick in on July 9 after a series of delays.

"I think we're all monitoring the situation on tariffs," he said, adding that higher commodity and raw material prices could impact investment decisions on new projects.

"At this stage, we're not seeing any change in position from our customers," he said.

(Reporting by Florence Tan; Writing by David Stanway; Editing by Mrigank Dhaniwala and John Mair)