The conflict in Iran, the US and Israel hides serious and „very real“ dangers to the global oil industry, as logistical risks have already extended far beyond the Strait of Hormuz.
This was stated by the CEO of the energy giant Chevron, Mike Wirth, on the air of the program “Sunday Morning Futures“ on Fox News on Sunday evening. His warning comes amid escalating market tensions and despite a temporary lull following US President Donald Trump's decision to postpone planned air strikes on Iran in search of a diplomatic agreement.
Risks are widening: From Hormuz to the Black Sea
According to the Chevron leader, energy markets are facing unprecedented pressure as geopolitical instability affects key global arteries.
„We are now seeing that not only the Strait of Hormuz, but also the Red Sea and the Black Sea hold risks and uncertainties. The challenges have widened and the risks to supplies are very real“, Mike Wirth stressed to Fox News.
The war in Iran, which began on February 28, 2026, has blocked traffic through the strategic Strait of Hormuz, through which nearly 20% of the world's oil passes. Tensions have been further heightened by Houthi attacks in the Red Sea, which threaten alternative export routes for Saudi Arabia and neighboring countries. In response to the crisis, Chevron has begun talks with Iraq to build a new oil pipeline north to the Mediterranean Sea, aiming to completely bypass the danger zones.
Record profits and exhausted buffers in the industry
Paradoxically, while the conflict threatens the global economy, the largest oil companies are reporting record financial results due to a surge in refining margins. On Friday, Chevron reported its highest quarterly profit in history of $12.1 billion, supported by record US production (2.1 million barrels per day). Competitor ExxonMobil also doubled its profit to $14.5 billion, CNBC reported in its market analysis.
Despite the financial boom, Wirth warned in an interview with The Hill that “market shock absorbers” and global inventories are progressively decreasing, which will keep fuel prices at the gas station high in the third quarter of the year. The retail price of gasoline in the United States has already crossed the threshold of $4 per gallon, becoming a major political challenge before the upcoming midterm elections in the country.
What's next for oil prices?
Experts from Wood Mackenzie and Kpler note that despite the decline in Brent crude oil to levels around $87 on hopes for a peace agreement in the Strait, refining capacity worldwide remains a critical point. About 10% of the world's refinery capacity is currently offline due to military operations and blockades.
The pressure on diesel and fuel oil prices is expected to increase as the autumn-winter season approaches. As Reuters reports, investors are closely watching whether Iran and the United States will agree on a framework for opening the Strait of Hormuz, which remains the only sure way to stabilize the energy system in the long term.