Oil futures underestimate impact of Strait of Hormuz closure, says Chevron CEO

Chevron CEO Mike Wirth warned that the oil futures market has not fully accounted for the supply disruption caused by the closure of the Strait of Hormuz, a key route for about 20% of global oil supplies. Despite recent oil price drops due to optimistic US-Iran talks, Wirth emphasized that physical oil supply is tighter than futures prices suggest because of halted flows, damaged infrastructure, and reduced Gulf Arab output. Restarting production and rebuilding inventories will take time, prolonging market uncertainty. This signals potential sustained volatility in oil markets as the situation unfolds.