U.S. Energy Secretary Chris Wright asserted on June 12 that nearly 7 million barrels of oil are now flowing daily through the Persian Gulf, crediting U.S. military assistance for the recovery of roughly half the volumes previously stranded by the Strait of Hormuz chokepoint. However, Chevron CEO Mike Wirth countered Wright’s estimate, arguing that the actual volumes are smaller, though rising.
Wright, speaking at a Bloomberg energy event in Houston, emphasized that U.S. military intervention has been pivotal in restoring oil flows disrupted by ongoing tensions in the region. 'Flows today are approaching half of the gap, and they’re rising,' he said, referring to the 14 million-barrel-per-day shortfall created by the conflict. He added that the 7 million-barrel figure is a 'rough estimate' and expects full restoration of flows regardless of Iran’s actions.
In contrast, Wirth offered a more tempered view, noting that while some oil is moving through the Strait of Hormuz—often with transponders turned off and U.S. military support—the volumes are not yet matching Wright’s claims. 'Our view would be it’s probably not quite that much,' Wirth stated.
Market Adjustments and Strategic Reserves
The global oil market has adjusted to the crisis through rising U.S. crude exports, conservation efforts, and increased pipeline shipments from Saudi Arabia and the UAE. Despite these measures, emergency stockpiles are dwindling rapidly. The U.S. Strategic Petroleum Reserve (SPR) has been drawn down to its lowest levels since 1983, with 66 million barrels released since the conflict began. President Trump authorized the release of 172 million barrels over several months, further depleting reserves.
This crisis shows us that the industry finds a way, said oil forecaster Dan Pickering. But if the strait does not open, even if 7 million barrels a day get out, that means another 7 million barrels a day aren’t.
Oil prices have moderated somewhat since peaking at $138 per barrel in April, currently hovering around $87 as of June 12. However, experts warn that larger price spikes could occur by late summer if normal flows are not restored.