Oil markets still underestimate supply shock from Strait of Hormuz closure despite 60% price rise

Chevron CEO Mike Wirth warned that oil and gas futures prices do not fully reflect the supply disruptions caused by the closure of the Strait of Hormuz, a key channel for nearly 20% of the world's crude oil and LNG. Despite a 60% surge in prices since the Iran conflict began, market fundamentals remain tight and supply shortages are severe, especially in Asia. Emergency releases from strategic reserves and production cuts by Gulf countries have not offset the large offline supply. Even if the strait reopens, relief will be slow due to the physical nature of supply changes.