Chevron CEO Mike Wirth has highlighted significant risks to global energy supplies amid increasing geopolitical conflicts. In an interview on ‘Sunday Morning Futures,’ Wirth discussed the volatility in oil markets, rising gas prices, and the critical necessity for Congress to implement permitting reforms. He emphasized the stabilizing role of U.S. production in international markets.
As tensions rise due to the situation in Iran and Houthi attacks on Saudi oil facilities, oil prices are climbing. Wirth warned of the ‘very real’ threats facing the global oil industry. Following President Trump’s suspension of U.S. strikes against Iran and Saudi Arabia’s efforts to form a coalition to secure shipping routes, the risks have become more apparent.
‘We now see risks not only in the Strait of Hormuz but also in the Red Sea and the Black Sea,’ Wirth noted. This expansion of challenges has made the dangers to oil supply increasingly significant.
The global energy market remains fragile as U.S. tensions with Iran continue into their sixth month. Global inventories are also on the decline, which exacerbates the pressure on energy supplies. Wirth stated, ‘The world energy system has been stressed, and the demand for market supplies has never been higher.’
The Strait of Hormuz, a crucial trade artery, is central to the U.S.-Iran conflict. Houthi attacks on the Red Sea have also raised concerns about the corridor’s reliability, impacting global shipping and energy supply.
U.S. crude oil currently trades at about $84 per barrel, while the national average gasoline price is $4.09 per gallon, significantly higher than last year’s average of $3.15, as reported by AAA.
Despite these uncertainties, Chevron has reported a 20% increase in production year-on-year, with a 5% growth from the first to the second quarter of 2026. Wirth mentioned that Chevron has achieved a record by producing more than 2 million barrels of oil equivalent in one day, a new U.S. high.
Chevron is exploring alternatives to traditional oil shipping routes such as the Strait of Hormuz. Wirth revealed ongoing discussions with Iraq about the possibility of entering one or two oil fields there. The talks include potentially constructing a pipeline leading north to the Mediterranean Sea, providing a different route that avoids the contentious Strait of Hormuz.
Nora Moriarty, a writer at Fox News Digital, contributed to the information.