Chevron CEO predicts oil shortages and economic slowdown after Hormuz closure
Updated
Updated · Fox Business · May 4
Chevron CEO predicts oil shortages and economic slowdown after Hormuz closure
14 articles · Updated · Fox Business · May 4
Speaking at the Milken Institute conference, Mike Wirth said Asia would be hit first, with Europe next, while the last scheduled Gulf oil shipment was being offloaded at California's Port of Long Beach.
He said the US, though a net crude exporter, would also feel tightening supplies as commercial stocks, shadow-fleet tankers and strategic reserves are absorbed.
Brent and WTI remained above $100 a barrel, US petrol averaged $4.48 a gallon, and Wirth said the disruption could rival the 1970s energy crises.
The oil shock is here, but is a global food crisis the even greater threat looming just behind it?
As strategic reserves dwindle, what is the world's last line of defense against a total economic meltdown?
With conflicting claims of control, is safe passage through the Strait of Hormuz a realistic goal or a military fantasy?
Strait of Hormuz Closure Halts 20% of Global Oil Supply, Triggering Historic Energy and Economic Crisis
Overview
In late April 2026, the US-Israeli coalition closed the Strait of Hormuz, causing a sharp drop of 11 million barrels per day in global oil supply. This triggered soaring jet fuel prices, leading airlines worldwide to cut flights and forcing Spirit Airlines to cease operations. The oil shortage sparked economic contraction in Asia and rising global inflation, while strategic petroleum reserves rapidly depleted and Brent crude prices neared $125 per barrel. Diplomatic talks stalled amid escalating military actions, prolonging the crisis. These shocks exposed vulnerabilities in global supply chains and accelerated a global shift toward energy independence and renewable investments, reshaping long-term energy security.