Chevron CEO Warns of Real Threat to Global Oil Supplies

Chevron CEO Mike Wirth warned that escalating conflict between the United States and Iran, alongside Houthi attacks on Saudi oil facilities, has created a "very real" threat to global oil supplies. Speaking on "Sunday Morning Futures," Wirth described energy markets as fragile and uncertain as a six-month conflict persists and global inventories decline.

Wirth highlighted critical vulnerabilities in shipping lanes, specifically naming the Strait of Hormuz, the Red Sea, and the Black Sea. He stated that the targeting of energy assets has degraded the capacity of the energy system to meet global demand. These disruptions coincide with rising costs, with U.S. crude oil trading at approximately $84 per barrel and national gasoline averages reaching $4.09 per gallon.

To mitigate these risks, Chevron is in discussions with Iraq to potentially enter oil fields and construct a pipeline moving north toward the Mediterranean Sea to bypass the Strait of Hormuz. These developments follow a period of volatility in which President Donald Trump paused U.S. strikes against Iran, while the Government of Saudi Arabia worked to build an international coalition to protect vital shipping routes.