Concerns over availability will soon replace fears about price, according to Mike Wirth
Physical oil shortages could begin to emerge worldwide within weeks due to the Middle East war and continued closure of the Strait of Hormuz, Chevron CEO Mike Wirth has warned.
Attacks on energy infrastructure and a dual shipping blockade in the critical waterway – which carries about a fifth of global seaborne oil and LNG – have sharply cut deliveries and pushed prices to multi-year highs. Multiple tankers have remained stranded in Hormuz since the initial US and Israeli strikes on Iran in late February. Washington and Tehran remain at odds over the strait’s future, with reports saying the US rejected Iran’s proposal for a new governance mechanism as part of peace talks.
Although active fighting paused under a fragile ceasefire last month, tensions flared again on Monday, when American and Iranian forces exchanged fire as the US military began escorting vessels through the strait.
Speaking at the Milken Institute Global Conference in Los Angeles on Monday, Wirth said economies will begin slowing, first in Asia – the most dependent on Gulf oil – and then in Europe, as supply tightens.
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