Full Breakdown
Chevron CEO Warns of Worsening Jet Fuel Shortage Amid Strait of Hormuz Conflict
4/28/2026, 6:48:16 AM
Jet Fuel Shortage Threatens Global Aviation
Chevron chief executive Mike Wirth told CBS News’s “Face the Nation” that jet-fuel supplies are tightening in Europe and Asia and that aviation will likely worsen in the coming weeks. He said the shortage is prompting airlines to adjust schedules and raise fares.
Conflict in the Strait of Hormuz Drives Supply Tightening
The shortage follows Iranian restrictions on shipping through the Strait of Hormuz, a chokepoint for one-fifth of world oil. After U.S. and Israeli strikes on Iran in late February, the U.S. Navy began a blockade on April 13, disrupting Middle-Eastern refiners that supply much of Europe’s jet-fuel and depleting shock-absorber inventories.
Key Players
Mike Wirth, CEO of Chevron, issued the warning. United Airlines and Delta Air Lines have announced capacity cuts of about 5 % and 3.5 % respectively. Airlines for America tracks U.S. jet-fuel prices; the International Air Transport Association (IATA) reports global prices. International Energy Agency (IEA) calls the Hormuz crisis a major energy-security threat.
Numbers Illustrating the Crisis
U.S. jet-fuel price rose from $2.50 per gallon before the conflict to $4.19 per gallon (Airlines for America). IATA reported a 6.7 % week-over-week decline in the global average price, to $184.63 per barrel. IEA estimates a loss of 13 million barrels of oil supply per day, exceeding the impact of the 1973 and 1979 oil crises. Fuel typically accounts for 25 % of airline operating costs.
Industry Responses and Official Outlook
Wirth said depleted inventories leave system vulnerable to upward risk and that even if shipments resume, supply chains may take time to normalize. United Airlines CEO Scott Kirby confirmed a plan to cut 5 % of routes in quarters two and three; Delta Air Lines has trimmed growth. Carriers are shifting toward premium seating, baggage fees and fare adjustments to offset rising fuel costs.
Conflicting Trends in Jet-Fuel Pricing
U.S. jet-fuel prices have more than doubled since February, yet IATA data shows a recent week-over-week decline in the global average price. The divergence underscores regional volatility: tightness in Europe and Asia contrasts with modest easing in broader markets.
Verbatim Quotes
- “It’s not flowing today. So, we are seeing jet fuel tighten very quickly in Europe, in Asia, and we’re seeing airlines announce adjustments in their flight schedules,” — Mike Wirth, CEO, Chevron
- “I think aviation is clearly an area where it’s going to probably get worse over the next few weeks.” — Mike Wirth, CEO, Chevron
- “We’re seeing it flow through into fares. I think that’s one of the first places it will be felt most broadly,” — Mike Wirth, CEO, Chevron
- “The risks kind of skew to the upside right now,” — Mike Wirth, CEO, Chevron
Outlook: What May Come Next
If the Strait of Hormuz remains blocked, analysts expect continued pressure on jet-fuel inventories, prompting further capacity cuts and fare hikes ahead of the summer travel peak. Monitoring U.S. Navy enforcement actions and any diplomatic de-escalation will be essential to gauge future supply stability.
