Iran War Uncertainty Haunts Energy Markets

Chevron's CEO Mike Wirth warns that the impact of the Iran war on energy markets has left things 'somewhat fragile and uncertain.' This uncertainty is due to risks to oil export paths, particularly through the Strait of Hormuz and the Red Sea.

The situation is further complicated by the fact that inventories have been drawn down globally, both in strategic and commercial stocks. Despite strong demand, this has led to a precarious balance between supply and demand.

Wirth attributes some credit to the US for stepping up oil production to help alleviate the situation. However, he also acknowledges that energy assets have been targeted in the conflict, degrading the capacity of the global energy system to meet demand.