Chevron Chief Warns of Imminent Global Oil Supply Crunch

(MENAFN) The head of Chevron has warned that the world could face actual oil shortages within weeks, citing escalating instability in the Middle East and ongoing disruptions in a key global energy transit route.

According to the warning, conflict-related disruptions involving Iran and Israel, combined with continued restrictions in the Strait of Hormuz, have significantly reduced global energy flows. The strait is a vital corridor for international trade, handling roughly 20% of global seaborne oil and liquefied natural gas shipments.

Reports indicate that attacks on energy infrastructure and interruptions to shipping through the waterway have contributed to sharp supply reductions, pushing oil prices to levels not seen in years. Several vessels have reportedly been unable to pass through the area since earlier military actions, while diplomatic tensions over control and security of the strait remain unresolved. Negotiations between Washington and Tehran have reportedly stalled, including disagreements over proposed governance arrangements for the waterway.

Although active combat temporarily eased under a fragile ceasefire, tensions reportedly reignited after renewed exchanges between US and Iranian forces during recent naval escort operations in the region.

Speaking at an economic conference in Los Angeles, Mike Wirth said global economies will begin feeling the impact in stages, starting in Asia—heavily dependent on Gulf energy imports—and later extending to Europe as supply constraints intensify.

He noted that governments and markets are already tapping commercial inventories, reserve stocks, and alternative shipping channels in an attempt to delay shortages, but warned these measures are temporary. He added that supply tightness could soon shift economic focus away from price fluctuations toward actual fuel availability.

Wirth also compared the potential disruption to major historical oil crises in the 1970s, which led to severe shortages and economic slowdowns across multiple industrialized economies.

In a separate interview, he emphasized that the issue is increasingly about physical access to fuel rather than cost alone. He warned that effects on global supply chains could become visible within weeks.

He pointed to early signs of strain, including reported reductions in flight operations by some European carriers due to fuel constraints, as well as demand-control measures being introduced in parts of Asia to manage consumption.

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