Chevron chief warns Strait of Hormuz closure will soon lead to oil shortages

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Chevron's CEO has warned that the closure of the Strait of Hormuz could lead to significant global oil supply shortages. The Strait is critical for oil transportation, carrying almost 20% of the world's crude oil, and disruptions are expected to impact economies, particularly in Asia.

Chevron chief warns Strait of Hormuz closure will soon lead to oil shortages The chief executive of Chevron has warned that disruptions in the Strait of Hormuz could soon lead to global supply shortages. Mike Wirth said the closure of the waterway, which normally carries about 20 percent of the world’s crude, will begin to show in physical shortages across markets. He added that economies are likely to contract as demand adjusts to constrained supply, with Asia expected to feel the impact first. Wirth made the remarks during a discussion hosted by the Milken Institute.