May. 4 at 8:37 PM
Chevron CEO Mike Wirth warned about risks to tanker transit through the Strait of Hormuz as the U.S. works to reopen the key Persian Gulf route.
The U.S. and Iran exchanged fire Monday, with U.S. forces escorting ships through the strait. The escalation followed President Donald Trump’s plan to reopen Hormuz, putting a fragile ceasefire at risk.
Chevron and other major oil companies have cut Middle East production since the conflict began in late February. The closure disrupted about 1 billion barrels of global oil shipments and pushed crude prices up nearly 60% in around nine weeks.
Refineries have been relying on stockpiles, but these may run out. Wirth warned the Trump administration that supply buffers are shrinking, increasing upward pressure on prices, volatility, and risk.
While the U.S. is unlikely to face fuel shortages as the world’s largest oil producer, consumers will see higher prices. Supply disruption risks are greater in other regions.
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