Oil industry executives have privately alerted the Trump administration that the energy crisis, exacerbated by the ongoing war with Iran, is poised to worsen. CEOs from major firms including ExxonMobil, Chevron, and ConocoPhillips met with White House officials, though President Trump was not present, to convey their concerns about the deepening crisis. These executives specifically highlighted the continued disruption to energy flows through the Strait of Hormuz, a critical shipping lane, as a primary driver of volatility in global energy markets.
The discussions, as reported by The Wall Street Journal, indicated that the U.S. oil benchmark has already climbed to around $99 a barrel, up from $87 a barrel when the White House meetings occurred. Exxon CEO Darren Woods warned that oil prices could surpass current elevated levels due to speculative bidding and anticipated a supply crunch in refined products. Chevron CEO Mike Wirth and ConocoPhillips CEO Ryan Lance echoed these concerns, emphasizing the significant scale of the disruption. Despite measures like easing sanctions on Russia and a record emergency oil release of 400 million barrels, prices have not stabilized.
While none of the executives attributed blame to the Trump administration for the crisis, a senior official acknowledged the likelihood of continued price increases and limited immediate solutions. The Pentagon is exploring options to reopen the Strait of Hormuz within weeks. Some oil executives are preparing for an extended period of high oil prices, which, while boosting short-term profits, could ultimately harm the industry and the broader economy. Energy Secretary Chris Wright and Interior Secretary Doug Burgum have been actively working with energy companies to mitigate the situation. The national average price of unleaded regular gas has risen more than 45% since the war with Iran began, and the national average price of diesel has reached $6.23 per gallon, setting new all-time highs.
