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.

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.

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.