Iran Conflict Sparks 'Very Real' Threat to Global Oil Supplies, Wirth Warns

Chevron CEO Mike Wirth warned that escalating tensions in Iran have created a 'very real' threat to global oil supplies, driving up gas prices. The Strait of Hormuz, Red Sea, and Black Sea are now at risk due to Houthi attacks on Saudi oil facilities.

Oil prices have climbed following President Donald Trump's pause on U.S. strikes against Iran, with the national average price for a gallon of gasoline standing at $4.09, nearly $1 higher than last year's average. Wirth emphasized that energy markets are 'fragile and uncertain' due to the ongoing conflict.

Chevron's production is up 20% year-on-year, but Wirth noted that infrastructure damage and new risks will be priced into the market on shipping. The company is exploring ways to bypass oil shipping through vulnerable waterways by entering Iraqi oil fields or constructing a pipeline to the Mediterranean Sea.