Chevron chief on Iran war impacting energy markets: 'The situation remains somewhat fragile and uncertain'
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Mike Wirth, Chevron chair and CEO, said the impact that the Iran war has had on energy markets has left things “somewhat fragile and uncertain.”
Wirth told Fox News’s Maria Bartiromo on “Sunday Morning Futures” on Friday in an interview aired Sunday about risks to all the paths of transit for oil exports, specifically the Strait of Hormuz and the Red Sea. Wirth said that some of the “challenges have expanded” despite “pretty strong” demand.
“And so, inventories have been drawn down around the world, whether it’s strategic stocks or commercial stocks, and the situation remains somewhat fragile and uncertain,” he continued.
Wirth said that he believes the industry has “done well” with the help of the U.S. having “stepped up to be part of the answer here” when it comes to oil production.
“Longer term, I think you will see some changes in the system,” he added before referring to discussions held about developing a pipeline to the Mediterranean Sea. This pipeline would be in response to Iran’s closure of the Strait of Hormuz, where roughly 20 percent of the world’s oil comes from, and the Houthi blockade on the Red Sea keeping around 5 percent of the world’s oil stranded.
“I think the unfortunate thing is that energy assets have been targeted in this conflict, and what that means is it degrades the capacity of the energy system to meet global demand, and how quickly that comes back will be one of the things that determines when markets actually get back to some sort of a new equilibrium,” Wirth said.
Oil manufacturers have looked at establishing a pipeline across Saudi Arabia and evading the Houthi blockade in the Red Sea. This path goes from Yanbu, Saudi Arabia, through to the Suez Canal in Egypt to the Mediterranean, sailing around Africa past the Cape of Good Hope and off to Asia.
The challenge here is if enough oil can move quickly enough through the canal to meet global demands, Homayoun Falakshahi, head of crude oil analysis at Kpler, told Al Jazeera last month.
Iran’s closure of the Strait of Hormuz has caused gas prices to soar since the war began on Feb. 28. The national average for gas in the U.S. reached $4.10 on Sunday, according to AAA — more than $1 higher than when the war began.
The Trump administration is looking to reopen closed oil refineries, specifically the St. Croix refinery built to refine Venezuelan oil, a White House official confirmed with The Hill last week. Three industry executives told Politico that the White House has talked about reopening refineries from the Virgin Islands to California.
The St. Croix refinery shut down indefinitely in 2021 after the Environmental Protection Agency ordered it to shut down for 60 days, saying its oil releases and air pollution posed an “imminent risk to public health.”
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Read the full story at The Hill ↗
Chevron's chief executive described current energy market conditions as uncertain following geopolitical developments affecting major oil shipping routes. Transit risks in the Strait of Hormuz and Red Sea have reduced global oil flow while demand remains strong, leading to inventory drawdowns worldwide. Industry discussions include potential new pipeline infrastructure to bypass existing chokepoints. U.S. gasoline prices have increased approximately $1.10 per gallon since late February. The administration is examining options to increase domestic refining capacity, including potential reopening of closed refineries.
Read the full story at The Hill ↗
Skip to content
Mike Wirth, Chevron chair and CEO, said the impact that the Iran war has had on energy markets has left things “somewhat fragile and uncertain.”
Wirth told Fox News’s Maria Bartiromo on “Sunday Morning Futures” on Friday in an interview aired Sunday about risks to all the paths of transit for oil exports, specifically the Strait of Hormuz and the Red Sea. Wirth said that some of the “challenges have expanded” despite “pretty strong” demand.
“And so, inventories have been drawn down around the world, whether it’s strategic stocks or commercial stocks, and the situation remains somewhat fragile and uncertain,” he continued.
Wirth said that he believes the industry has “done well” with the help of the U.S. having “stepped up to be part of the answer here” when it comes to oil production.
“Longer term, I think you will see some changes in the system,” he added before referring to discussions held about developing a pipeline to the Mediterranean Sea. This pipeline would be in response to Iran’s closure of the Strait of Hormuz, where roughly 20 percent of the world’s oil comes from, and the Houthi blockade on the Red Sea keeping around 5 percent of the world’s oil stranded.
“I think the unfortunate thing is that energy assets have been targeted in this conflict, and what that means is it degrades the capacity of the energy system to meet global demand, and how quickly that comes back will be one of the things that determines when markets actually get back to some sort of a new equilibrium,” Wirth said.
Oil manufacturers have looked at establishing a pipeline across Saudi Arabia and evading the Houthi blockade in the Red Sea. This path goes from Yanbu, Saudi Arabia, through to the Suez Canal in Egypt to the Mediterranean, sailing around Africa past the Cape of Good Hope and off to Asia.
The challenge here is if enough oil can move quickly enough through the canal to meet global demands, Homayoun Falakshahi, head of crude oil analysis at Kpler, told Al Jazeera last month.
Iran’s closure of the Strait of Hormuz has caused gas prices to soar since the war began on Feb. 28. The national average for gas in the U.S. reached $4.10 on Sunday, according to AAA — more than $1 higher than when the war began.
The Trump administration is looking to reopen closed oil refineries, specifically the St. Croix refinery built to refine Venezuelan oil, a White House official confirmed with The Hill last week. Three industry executives told Politico that the White House has talked about reopening refineries from the Virgin Islands to California.
The St. Croix refinery shut down indefinitely in 2021 after the Environmental Protection Agency ordered it to shut down for 60 days, saying its oil releases and air pollution posed an “imminent risk to public health.”
Copyright 2026 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Read the full story at The Hill ↗
Mike Wirth, Chevron chair and CEO, stated that geopolitical impacts on energy markets have left conditions 'somewhat fragile and uncertain' The Strait of Hormuz handles roughly 20% of global oil; the Red Sea blockade affects approximately 5% of world oil supply Global oil inventories, both strategic and commercial, have been drawn down The situation reflects market fragility that requires infrastructure adaptation to reach equilibrium U.S. national average gas price reached $4.10 on a specific Sunday, representing an increase of over $1 since late February The Trump administration has discussed reopening the St. Croix refinery and other facilities The St. Croix refinery was shut down indefinitely in 2021 following an EPA order citing public health risks from emissions
Read the full story at The Hill ↗
- Chevron CEO Mike Wirth stated that geopolitical tensions affecting Middle Eastern oil transit routes have created fragile energy market conditions
- Shipping disruptions in the Strait of Hormuz and Red Sea are straining global oil supply; roughly 25% of world oil transit is affected
- Global oil inventories have declined as demand remains strong; potential infrastructure projects like a Saudi Arabia-Mediterranean pipeline are under discussion
- U.S. gas prices have risen over $1 per gallon since late February; the Trump administration is exploring refinery reopenings to increase domestic capacity