CERAWeek Energy Conference: Global oil executives warn the Iran war will cause long-term damage

1. Global oil executives and energy ministers expressed growing concern on Monday at the Houston CERAWeek conference about the long-term impact of a US-Israel war with Iran on the global economy. The TotalEnergies CEO pointed out that the consequences are not only high energy prices, but also damage to other supply chains. For example, helium shipments, which are vital to the semiconductor and medical supply industries, have already been disrupted.2. US Secretary of Energy Wright downplayed the crisis, stating that oil prices are not yet high enough to impact demand and argued that the US has no choice but to go to war with Iran. However, JPMorgan analysts said that shutdowns have "quickly led to acute shortages of crude oil and oil products across Asia."3. The Abu Dhabi National Oil Company CEO warned that surging oil prices are dragging down global economic growth. The president of trading firm Vitol Americas cautioned that if oil prices reach $120, the world will face severe demand destruction. The Chevron CEO pointed out that it will take time to get out of this predicament, and the energy market tensions caused by the closure of the Strait of Hormuz have not yet been fully reflected in forward oil prices.4. An official from Japan’s Ministry of Economy, Trade and Industry said that the IEA’s move to release a record 400 million barrels of strategic reserves is not enough to calm the market. Brent crude closed on Monday at a high of $99.94, despite Trump’s claim that he is in negotiations with Iran, which triggered market sell-offs.