Already a subscriber? Make sure to log into your account before viewing this content. You can access your account by hitting the “login” button on the top right corner. Still unable to see the content after signing in? Make sure your card on file is up-to-date.
Chevron’s CEO, Michael Wirth, has expressed concern about the escalating tensions in the Red Sea, highlighting the potential impact on global oil supplies and prices.
Speaking to CNBC, Wirth emphasized the company’s vigilance in ensuring the safety of its operations and personnel. He said, “We coordinate every vessel movement with US and other military authorities that are in the region, but it’s a very serious situation. It seems to be getting worse.”
In addition to Chevron, other oil companies, including BP and Shell, have altered their regional shipping routes, raising concerns about potential delays and increased oil prices. According to sources cited by The Wall Street Journal, Shell has reportedly halted all shipments through the Red Sea.
This comes as the Houthis, an Iran-backed rebel group in Yemen, intensify their attacks on commercial shipping in the Red Sea, a critical oil trade route. The Houthis claim their attacks are a response to Israel’s actions in Gaza. However, vessels with no connection to Israel have also been targeted.
In response to the attacks, the United States has responded with counterstrikes in Yemen. US officials are also reconsidering the terrorist designation of the Houthis, which President Biden had previously removed in February 2021. John Kirby, spokesperson for the White House National Security Council, confirmed that the review of the foreign terrorist organization (FTO) label for the Houthis is ongoing.