Exxon, Chevron warn fuel prices will remain high amid Iran war
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ExxonMobil and Chevron warned that global fuel prices are likely to stay elevated as the conflict in Iran threatens oil supplies, Reuters reported. The two oil majors expressed concern that prolonged warfare could disrupt production and exports from the region, keeping upward pressure on prices. The warnings come even as major economies struggle with inflation.
The Warning
ExxonMobil and Chevron, two of the world's largest oil firms, issued a joint warning through Reuters about the potential for sustained high fuel prices. They specifically pointed to the risk of supply disruptions from the Iran war, which could reduce global crude availability by up to 2 million barrels per day. The companies noted that even a partial loss of Iranian output would strain markets already tight from OPEC+ cuts, with Brent crude trading above $110. Neither firm offered a specific price forecast, but emphasized that volatility will persist while the conflict continues.
Market Impact
The warnings sent Brent crude futures above $115 per barrel, extending a rally driven by fears of a wider Middle East conflict. Analysts at Goldman Sachs estimate that a full blockage of the Strait of Hormuz would add $25-$30 to oil prices, pushing global benchmarks toward $140. Refiners in Asia and Europe are already facing record-high input costs, and the International Energy Agency has cautioned that a prolonged war could undermine global energy security. Consumer fuel prices in the United States have risen 12% since the conflict began, with the national average approaching $4.50 per gallon.
What's Next
Exxon and Chevron are expected to provide more details in their upcoming quarterly earnings calls, scheduled for late August. It remains unclear whether diplomatic efforts to de-escalate the Iran conflict will succeed before global fuel demand peaks in the summer driving season.
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Exxon, Chevron warn fuel prices will remain high amid Iran war
