Chevron CEO Discusses Global Oil Disruptions and Strait of Hormuz Risks

Chevron chairman and CEO Mike Wirth appeared on CBS News' "Face the Nation" on April 26, 2026, to discuss the current global energy situation. In the interview with host Margaret Brennan, Wirth described the energy system as having lost significant flexibility amid recent disruptions.

The global economy consumes about 100 million barrels of oil daily, with approximately 20% typically moving through the Strait of Hormuz. Wirth stated that inventories in tanks, ships, and strategic reserves have been drawn down over the past couple of months, reducing the system's ability to absorb shocks.

This has led to upward pressure on prices and increased volatility, which he said is likely to continue.

explained that resuming flow through the Strait of Hormuz is essential to rebuild inventories and alleviate market pressures. He noted that even if the strait reopened immediately, restoring normal logistics for ships and pipelines would take time. Some oil is rerouting through the Red Sea, but a substantial amount remains unable to flow.

Regarding risks in the strait, Wirth said Iran has demonstrated capabilities to target vessels, including through mines and other means. He could not quantify the extent of mining but referenced incidents occurring with some frequency. Wirth added that Chevron works with the U.S. Navy and other military organizations to assess safe transit.

to send ships through the strait, Wirth stated the company would need high confidence in the safety of personnel and cargo. He mentioned that naval escorts have been used in past conflicts and could provide added security in initial transits. Wirth emphasized that the company's top priorities are the safety of people, security of assets, and environmental protection, rather than just pricing risks.

The interview also addressed damage to energy infrastructure in the Middle East. Wirth said repair times vary, with some fixes taking weeks or months, while others, such as damaged LNG facilities, could require years due to supply chain issues. Wirth noted that some oil fields have been shut in, and restarting them involves complex reservoir management.

The discussion touched on negotiations involving the president and the administration to address these issues.

referenced a statement from the head of the International Energy Agency comparing the current situation to combined impacts of past crises, including the 1973 Arab oil embargo, the 1979 Iranian oil crisis, and events around Russia's 2022 invasion of Ukraine.

Wirth framed the issue as significant supply removal from the system. He expressed hope for successful negotiations to restore safe passage. Wirth also addressed comments from the energy secretary about potential naval escorts for initial ships. He confirmed that such measures have been employed before and could enhance confidence.

Overall, Wirth indicated that the disruptions' effects on global energy markets will persist for some time.