Chevron CEO Mike Wirth warned Monday that oil companies and the world's biggest energy consumers face a major uphill battle to restore global petroleum supply chains and rebuild inventories once the Strait of Hormuz fully reopens.
Speaking at the CERAWeek by S&P Global conference in Houston, Wirth underscored the severity of the disruption caused by tensions in the Middle East, cautioning that supply shortages will not be resolved overnight.
"We've got a lot of oil and gas now that is not flowing into the market," Wirth said, according to Politico. "Physical supply chains don't respond immediately, so even if the strait opens at some point, it will take time to rebuild inventories of the right grades of crude and the right types of fuel."
Wirth indicated the fallout from Iran-linked attacks on oil tankers — along with the broader regional conflict — has dealt a heavier blow to global energy markets than the Russia-Ukraine war.
He pointed to mounting strain in Asia, where supplies of diesel and jet fuel are running low, while shipments of liquefied natural gas, fertilizer, and other critical goods have been delayed.
He also warned that the full extent of the damage remains unclear, with uncertainty over how much production has been shut down and how badly key infrastructure has been hit.
Meanwhile, Energy Secretary Chris Wright sought to reassure industry leaders that the disruption would likely be temporary, while calling on producers to step up output to meet demand.
"Markets do what markets do," Wright said. "Prices went up to send signals to everyone that can produce more: 'Please, produce more.'"
The Strait of Hormuz, a narrow waterway between Iran and Oman, handles a fifth of the world's oil supply and is widely considered one of the most critical chokepoints for global energy markets.
In recent weeks, the passage has been effectively constrained by heightened military activity, including reported attacks on commercial oil tankers and threats from Iran to restrict transit amid the broader Middle East conflict.
The disruption has forced some shipping companies to reroute or delay cargoes, while others have held back shipments altogether due to security concerns.
The resulting bottleneck has tightened global supply, driven up prices, and raised fears of prolonged instability in energy markets if safe passage through the strait is not fully restored.
Nicole Weatherholtz ✉
Nicole Weatherholtz, a Newsmax general assignment reporter covers news, politics, and culture. She is a National Newspaper Association award-winning journalist.
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