Iran Conflict May Keep Fuel Prices High for Extended Period

Two of the largest US oil producers, ExxonMobil and Chevron, have warned that ongoing tensions with Iran may keep fuel prices high for an extended period. The Strait of Hormuz, a crucial shipping route, has been a point of contention in the conflict.

The war against Iran could lead to continued disruptions in global supplies of diesel and other refined petroleum products, resulting in persistently high energy prices throughout 2020's second half. Chevron CEO Mike Wirth stated that 'we expect upward pressure on product prices in the third quarter and likely beyond.'

According to Pars Today, ExxonMobil (XOM.N) and Chevron (CVX.N) attributed their sharp increase in second-quarter refining profits to lower fuel inventories, reduced exports from China, and refinery shutdowns in Russia. These factors led to higher refining margins.