Chevron CEO Mike Wirth warned at the CERAWeek conference that global energy markets are underpricing the Strait of Hormuz closure. He stated that futures prices remain disconnected from physical supply shortages currently affecting Asia. Wirth noted that a full recovery will take significant time even after the strait reopens.
Oil prices continue to experience extreme volatility. Brent crude fell over 10% on Monday following President Trump's announcement of a pause in military strikes. Prices rebounded nearly 3% on Tuesday after Iran denied that de-escalation talks were occurring. Brent crude currently trades at over $102 a barrel.
Wirth emphasized the severity of the ongoing supply disruption. He claimed the closure has impacted global energy markets more significantly than the Russia-Ukraine war.