American oil executives warned Trump administration officials that the energy crisis triggered by the Iran war is likely to worsen, according to a report by the Wall Street Journal.
Executives from Exxon Mobil, Chevron, and ConocoPhillips warned in meetings with Trump administration officials that disruptions to energy flows through the Strait of Hormuz could continue to fuel volatility in global energy markets, according to the report on Sunday.
Exxon CEO Darren Woods warned that oil prices could rise further if speculators drive up prices and that markets may face a refined products supply crunch, while Chevron CEO Mike Wirth and ConocoPhillips CEO Ryan Lance also voiced concerns about the scale of the disruption, according to people familiar with the matter.
The White House is considering several measures to lower oil prices, including easing sanctions on Russian oil, releasing large amounts from emergency reserves, and potentially waiving limits on crude shipments between US ports.
Officials are also looking to increase oil flows between Venezuela and the US, a White House official told the WSJ.
The meetings were described as productive, but oil executives warned that few available options could ease the crisis and said reopening the Strait of Hormuz may be the only real solution to avoid prolonged high prices harming the global economy.
A senior administration official said prices are expected to keep rising and there are limited options to address the situation, adding that the Pentagon has proposed plans to reopen the strait and the administration hopes this can happen within weeks, not months.
US officials, including Interior Secretary Doug Burgum, have also discussed with Exxon and ConocoPhillips the possibility of returning to Venezuela to invest billions of dollars in its deteriorating oil sector, a White House official said, according to the report.
Oil giants Exxon and ConocoPhillips withdrew from Venezuela in 2007 after then-President Hugo Chavez nationalized their assets, and both companies have been seeking to recover billions of dollars they say they are still owed.
The Strait of Hormuz has been at the center of energy market concerns since Iran's Islamic Revolutionary Guard Corps announced its closure to most vessels amid US-Israeli attacks against the country that began on Feb. 28.
Before the war, around 20 million barrels of oil passed through the strait daily. Its disruption has pushed up oil prices.
US-Israeli attacks on Iran have so far killed around 1,300 people, including then-Supreme Leader Ayatollah Ali Khamenei.
Iran has retaliated with drone and missile strikes targeting Israel, Jordan, Iraq, and Gulf countries hosting US military assets.
