Exxon CEO warns oil prices haven't yet reflected full impact of Iran war supply disruptions

Exxon Mobil CEO Darren Woods stated that the current oil prices do not yet reflect the full extent of supply disruptions caused by the Iran war and the closure of the Strait of Hormuz. The market has so far been supported by oil tankers already in transit, strategic reserves, and commercial inventories, but these buffers will deplete if the strait remains closed. Woods expects oil flows from the Persian Gulf to take one to two months to normalize after the strait reopens, with prices likely to rise due to increased demand for refilling reserves. Exxon also warned that its Middle East production could drop by 750,000 barrels per day if the disruption continues through the second quarter, impacting about 15% of its total production.