ExxonMobil’s CEO discusses potential supply concerns from the Israeli-Iran conflict

Darren Woods, CEO of Exxonmobil He said there is sufficient supply in the global oil market to withstand disruptions in supply to Iran’s exports.

“The system currently has enough spare capacity to accommodate Iranian oil that has fallen out of the market,” Woods said in a “special report” on Fox News, adding “if export infrastructure or transport past the Strait of Hormuz is affected.”

Woods mentioned how the market is concerned about the ongoing conflict between Israel and Iran that disrupts the Strait of Hormuz between Oman and Iran. Energy Information Management (EIA).

Oil prices skyrocket after Israel attacks Iran

Iran produces 3.3 million barrels per day and exports about 1.6 million barrels per day of crude oil, accounting for less than 2% of global total demand.

It is also just a small portion of the oil that flows through the Strait of Hormuz. In 2024, oil flowed through the channels connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea, an average of 20 million barrels per day, representing approximately 20% of the world’s oil liquid consumption. To complicate the problem, there are also few alternative options to move oil out of the strait if it is closed.

Oil prices have risen as markets hit the market after the Israeli Defence Force (IDF) began sweeping Iran’s nuclear facilities and military leaders. The US West Texas intermediate price hits $72 per barrel as the strike raised concerns on Wall Street Escalating tension It could disrupt Iran’s energy supply between Israel and Iran.

Trump administration opens to mine and excavate 13 million acres of Alaska acres

However, prices began to fall as the attacks escaped export capabilities.

“I don’t think it’s intentionally disrupt the oil supply,” Woods said.

When Iranian oil is lost to the market, it could raise prices of up to $7.50 per barrel, but according to Lipou, if oil exports through the Strait of Hormuz are affected, the price could rise to $100.

Iran’s retaliatory targets that could have the most impact on prices are oil tankers heading to the US through the Strait of Hormuz, he added.

Ticker	safety	last	change	change %
xom	Exxon Mobil Corp.	114.02	+1.54	+1.37%

Israeli missiles have hit Iranian Sharrei Refinery near Tehran, which has a capacity of 225,000 barrels per day, and Sharra Fuel Depot near Tehran, Lipou said.

Click here to get your Fox business on the go

In total, Iran has 11 refineries, with 2.5 million barrels of oil refinery capacity per day.

Iranian missiles have hit Israel’s Haifa refinery, which has a capacity of 197,000 barrels per day. Israel has two refineries with refinery capacity of 300,000 barrels per day.