Oil firms warn US of Hormuz Strait crisis impact
Washington — Oil company executives have cautioned the White House that closure of the Strait of Hormuz, disrupting shipping traffic, will continue to drive global oil prices higher, according to The Wall Street Journal on Sunday.
ExxonMobil Chief Executive Darren Woods, Chevron Chief Executive Mike Wirth and ConocoPhillips Chief Executive Ryan Lance stated that disruptions to shipping lanes will continue to create instability in global energy markets.
The White House is considering measures to reduce world oil prices, including relaxing oil sanctions against Russia, releasing substantial emergency energy reserves, lifting restrictions on crude oil shipments between American ports and expanding Venezuelan oil exports, according to a White House official.
Over the past two weeks, American officials have discussed multi-billion-dollar investment proposals in Venezuela’s oil sector with Exxon and ConocoPhillips, the newspaper reported.
However, many in the oil industry fear such measures cannot resolve the crisis significantly, arguing that the only genuine solution is reopening the Strait of Hormuz.
The US Defence Department has informed the White House that options exist to reopen the waterway and the American government desires this to occur within the coming weeks, according to sources.
On 28 February, the United States and Israel launched strikes against numerous targets in Iran, including Tehran, causing damage and civilian casualties.
Iran retaliated by attacking Israeli territory and US military facilities in the Middle East.
Escalation around Iran has prompted closure of the Strait of Hormuz, the principal route for exporting oil and liquefied natural gas from Persian Gulf nations to global markets.
The crisis is affecting exports and oil production in the region.
Meanwhile, in his first address as Iran’s new supreme leader on Thursday, Ayatollah Mojtaba Khamenei stated that the Strait of Hormuz must remain closed as leverage in the conflict with the United States and Israel.