Chevron Warns Hormuz Closure to Trigger Oil Shortages as Brent Tops $126
CVX•Chevron CEO Mike Wirth warned the closure of the Strait of Hormuz, handling about 20% of global crude, will cause physical oil shortages and force demand contraction. Brent crude briefly topped $126 per barrel before falling to $115, while surging jet fuel costs forced Spirit Airlines to suspend operations.
1. CEO Warns of Supply Disruption
Mike Wirth cautioned that the ongoing closure of the Strait of Hormuz, a chokepoint responsible for roughly 20% of global crude flows, will lead to physical oil shortages and force a pullback in demand, with Asian markets among the first to feel the impact.
2. Crude Price Spike and Jet Fuel Impact
Brent crude briefly surged above $126 per barrel before retreating to around $115, while U.S. West Texas Intermediate hovered near $105; jet fuel costs climbed sharply, prompting Spirit Airlines to suspend all operations over the weekend.
3. Chevron’s Q1 Profit Decline and Production Exposure
Chevron reported $2.2 billion in first-quarter profit, down from $3.5 billion a year earlier, although adjusted earnings exceeded expectations; the company’s Middle East operations account for less than 5% of its total production.
