Iran Conflict Leaves Energy Markets 'Fragile and Uncertain'

Chevron's CEO Mike Wirth has warned that the Iran conflict is leaving energy markets 'somewhat fragile and uncertain.'

The Strait of Hormuz, a key oil transit route, has been disrupted since February 28, causing gas prices to surge. The national average for gas in the US reached $4.10 on Sunday, up from $3.09 when the war began.

Wirth believes that the industry has done well due to increased US oil production, but notes that inventories have been drawn down worldwide. He predicts that 'longer term, I think you will see some changes in the system.'

The Chevron CEO also mentioned discussions about developing a pipeline to the Mediterranean Sea as an alternative route for oil exports. This would bypass the Houthi blockade on the Red Sea and Iran's closure of the Strait of Hormuz.