Chevron CEO Mike Wirth stated on August 2, 2026, that global oil market buffers have been depleted, leaving supply vulnerable to the ongoing Iran conflict. Wirth noted that strategic reserves, which typically mitigate supply shocks, are no longer sufficient to stabilize the market.
As of early September 2026, West Texas Intermediate crude is trading between $102 and $103 per barrel, while Brent crude ranges from $107 to $108. These prices reflect a significant increase since the conflict intensified in late February 2026.
The disruption has removed between 6.5 million and 9 million barrels per day from the market. The Strait of Hormuz, which facilitates approximately 20% of global seaborne crude oil trade, has become increasingly dangerous due to tanker attacks and shipping interruptions.
US gasoline prices have risen to an average of $4.09 to $4.28 per gallon, an increase of nearly $1 per gallon compared to the previous year. This rise in fuel costs impacts airlines, shipping firms, and manufacturers, potentially slowing economic growth.
