Oil Industry Warns Trump: Strait Crisis Worsens Fuel Crunch

Executives from major firms like ExxonMobil, Chevron, and ConocoPhillips met with US Energy Secretary Chris Wright and Interior Secretary Doug Burgum, highlighting that the conflict has already significantly impacted energy flows. ExxonMobil CEO Darren Woods cautioned that oil prices, which recently surged from USD87 to nearly USD99 a barrel, could climb further if supply disruptions persist.

The Strait of Hormuz, a critical waterway for one-fifth of the world's oil and LNG, is currently blocking an estimated 9 million to 10 million barrels of oil per day, creating severe supply tightness. While the Trump administration is exploring options like releasing strategic petroleum reserves, easing Russian sanctions, and increasing Venezuelan oil flows, industry leaders emphasize that reopening the Strait is paramount.

They also note that despite short-term profit boosts, extremely high prices, potentially reaching USD120 a barrel as warned by Elevation Resources CEO Steven Pruett, could damage the global economy and reduce demand. Furthermore, US producers face limitations in rapidly increasing output, making a quick replacement for the blocked supply unlikely.