The chief executive of Chevron has warned that disruptions in the Strait of Hormuz could soon lead to global supply shortages.
Mike Wirth said the closure of the waterway, which normally carries about 20 percent of the world’s crude, will begin to show in physical shortages across markets.
He added that economies are likely to contract as demand adjusts to constrained supply, with Asia expected to feel the impact first.
Wirth made the remarks during a discussion hosted by the Milken Institute.
