Fuel crunch may worsen, says oil industry to Trump administration: Report

US oil executives have reportedly alerted the Trump administration that the energy crisis that has emerged from the Iran war is likely to get worse. This comes after Brent crude futures and US West Texas Intermediate crude surged more than 40 per cent this month to their highest levels since 2022. 

According to a report in Wall Street Journal, in a series of White House meetings and recent conversations with Energy Secretary Chris Wright, the CEOs of Exxon Mobil, Chevron and ConocoPhillips warned that the disruption in the Strait of Hormuz could continue to create volatility in global energy markets. 

Exxon CEO Darren Woods said oil prices could rise past current elevated levels, the report added. If speculators bid up prices, markets could see a supply crunch of refined products, he said. ConocoPhillips CEO told officials that the conflict and tanker disruptions around the waterway could keep markets volatile.

The report added that the Trump administration is considering several measures to ease prices, including sanctions on Russian oil, releasing emergency crude reserves, and boosting flows from Venezuela.

Industry executives warned that the opening of the Strait of Hormuz could be the only lasting solution to stabilise energy markets, the report added.

Meanwhile, Trump has called on several countries to send warships to secure the Strait of Hormuz. He said Gulf countries must come in and protect Hormuz as it is their own territory, and it is where they get their energy from.