Chevron CEO Says Naval Escorts Needed for Strait of Hormuz Ships
Chevron CEO Mike Wirth said commercial ships will likely need naval escorts when the Strait of Hormuz reopens due to risks from mines and attacks from land. The US Navy told shipping companies it cannot provide escorts right now but will be ready in weeks.
Chevron CEO Mike Wirth told CBS's "Face the Nation" that commercial vessels will likely need naval protection when traveling through the Strait of Hormuz. He cited dangers from mines in the water and threats from attacks launched from nearby land.
The US Navy has been holding daily calls with shipping companies who are requesting escorts through the strategic waterway. But Navy officials said during briefings this week that escorts are not possible right now.
Energy Secretary Chris Wright said in a CNBC interview that the US Navy will be ready to escort oil tankers through the strait, but it will take weeks to set up the operation.
The Strait of Hormuz is a narrow waterway between Iran and the Arabian Peninsula that serves as a critical chokepoint for global oil shipments. About one-fifth of the world's petroleum passes through this 21-mile-wide channel.
Shipping companies have been making almost daily requests for naval protection as tensions in the region create new risks for commercial vessels carrying oil and other cargo.
The Strait of Hormuz handles about 20% of the world's oil shipments. If ships can't safely pass through, gas prices could spike. Naval escorts would help protect oil tankers but aren't available yet.
Watch for updates on when the US Navy will be ready to provide escorts and whether other countries will help protect commercial ships.
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