India, May 5 -- Chevron Corp. (CVX) CEO Mike Wirth has raised alarms about possible global oil shortages after the Strait of Hormuz was closed, a vital shipping lane for crude oil.
During a discussion at a Milken Institute event, Wirth highlighted that this disruption might have effects similar to the energy crises seen back in the 1970s. He pointed out that as supply tightens, a decrease in demand might follow. Asian economies, which heavily depend on energy imports, are likely to feel the pressure first.
The Strait of Hormuz is crucial, handling around 20% of the world's oil supply, so its closure is a significant blow to the global energy market. This shutdown has occurred against a backdrop of rising geopolitical tensions linked to th...