Iran war is reshaping global energy markets, oil executives say
Oil and gas executives say Iran's blockade of the Strait of Hormuz has kept nearly a billion barrels of crude off the market, with the shortfall widening daily. They warn that the United States and Europe will need to overhaul strategic stockpiling for years to come.
At the closing CERAWeek panels in Houston, executives from ExxonMobil, Chevron and TotalEnergies said Iran's 65-day-plus blockade has fundamentally redrawn the energy map. They highlighted how Asian buyers diverting cargoes into the Atlantic basin have stretched the Brent-WTI spread to as much as six dollars.
US executives argued that Washington must move beyond merely refilling the Strategic Petroleum Reserve and accelerate permitting for new LNG export terminals around Houston and Galveston. The European Commission, meanwhile, is drafting a directive that would lift end-of-season gas storage targets from 80% to 95%.
On pricing, Brent is holding above 92 dollars and the December 2026 ICE contract reached 88 dollars this week. Goldman Sachs warned that a full Hormuz shutdown could push spot prices toward 110 dollars in the near term. Producers said they are revising spending plans while keeping discipline on cost controls.
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