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CERAWeek Opens Under Hormuz Crisis as Aramco CEO Bows Out and U.S. Moves to Soothe Oil Jitters

Executives are pressing for an endgame with tanker flows choked and prices whipsawing.

Overview

  • U.S. Energy Secretary Chris Wright told the Houston conference the disruption is temporary, pointing to strategic reserve releases of up to 1.5 million barrels per day that could approach 3 million and efforts to steer supplies to Asian refineries.
  • President Donald Trump paused strikes on Iranian power plants for five days after what he called productive talks, a signal that sent oil prices lower on Monday even as Tehran disputed that negotiations are underway.
  • Saudi Aramco chief Amin Nasser canceled his appearance to remain in the kingdom as the company reroutes crude to the Red Sea and has cut about 2 million barrels per day from two fields, according to Reuters reporting.
  • Iran-linked attacks have damaged Gulf energy assets, including a March 19 drone strike on the SAMREF Aramco-Exxon refinery and hits that left roughly 17% of Qatar’s Ras Laffan LNG capacity offline, Reuters reported.
  • Tanker traffic through the Strait of Hormuz has plunged from its prewar share of about one-fifth of global oil flows, with executives warning of Asian supply strains and forecasting very high LNG prices by late summer if the waterway remains shut.