Chevron CEO Warns Oil Prices Haven't Fully Priced in Supply Disruptions

Chevron CEO Mike Wirth warned that oil futures have not fully priced in the supply disruptions caused by the closure of the Strait of Hormuz. Speaking at S&P Global's CERAWeek conference, Wirth noted that there are 'very real, physical manifestations' of the disruption that are affecting global energy supplies.

The Strait of Hormuz is a critical trading route, responsible for almost 20% of global oil and energy supplies. Iran's blockade of the strait has forced U.S. hands and pushed crude oil prices higher globally.

Gulf Arab producers have reduced production since they are unable to export via the strait, while Iranian missile and drone strikes have further harmed energy infrastructure in the Middle East. Wirth emphasized that 'there really is a difference' in terms of physical supply this time versus prior incidents.