Strait of Hormuz shutdown squeezing global oil supply — ride the energy rally on Exxon and Chevron
The Strait of Hormuz — the narrow waterway that handles roughly a fifth of the world's oil — has been shut down since the Iran war broke out in February. Exxon is now warning that global oil inventories will hit dangerously low levels within weeks, which could push crude prices to $150–$160 a barrel.
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The Strait of Hormuz closure has choked off roughly 20% of the world's daily oil shipments since February, creating what CNBC calls a severe global energy shock. Exxon's own executive Neil Chapman is now publicly warning that inventories will hit all-time lows within weeks and that physical Brent crude cargoes could spike to $150–$160 per barrel. Even if a US-Iran ceasefire is reached soon, analysts say the era of cheap $60 oil is likely over because the supply damage is already baked in. Major oil producers like Exxon and Chevron directly profit from higher crude prices, and their stocks tend to rally hard when oil supply fears dominate headlines.