American oil executives are warning the Trump administration that the global energy crunch triggered by the Iran conflict could worsen as disruptions to shipping through the Strait of Hormuz threaten a major portion of the world’s oil supply, The Wall Street Journal writes.
In recent White House meetings, the CEOs of ExxonMobil, Chevron and ConocoPhillips cautioned that continued volatility could push crude prices higher and create shortages of refined fuels. U.S. oil has already climbed to around $99 per barrel as attacks on ships near the narrow waterway escalate.
Officials are weighing measures to ease the pressure, including releasing emergency reserves, easing sanctions on Russian oil and potentially expanding energy flows from Venezuela.
But industry leaders say the available options may have limited impact unless the vital shipping corridor reopens. Prolonged high prices could eventually weigh on economic growth and fuel demand.
The Wall Street Journal has the full story.
