ConocoPhillips CFO Warns of 'Critical Oil Shortages' by June as Hormuz Blockade Enters Third Month

ConocoPhillips Chief Financial Officer Andy O'Brien warned Thursday that oil markets face "critical shortages" for some nations as early as June, signaling a significant deterioration in global energy flows that have already driven Brent crude prices more than 50% higher over nine weeks. The warning comes as the Hormuz Strait blockade—linked to escalating tensions with Iran—enters its third month with no resolution in sight, raising pressure on energy-dependent economies and reinforcing concerns about demand destruction across major consuming regions.

The company disclosed during an analyst conference call that markets benefited from a temporary "grace period" as tankers that departed the Persian Gulf in late February continued to arrive at destinations. That window is closing. O'Brien told analysts the supply crunch that pushed Brent to a multi-year high just two days ago now appears poised to intensify sharply in the coming weeks. The pattern mirrors warnings issued simultaneously by Chevron, which also reported earnings Thursday while cautioning that the ongoing disruption to global tanker routes shows no sign of abating. Exxon Mobil, likewise, posted strong quarterly results as elevated prices more than compensated for curtailed production—but executives there joined the chorus of caution about deteriorating supply conditions ahead.

The convergence of warnings from three of the world's largest energy producers underscores the deepening severity of a supply shock that began as a regional maritime conflict but has cascaded into a structural challenge for global oil markets. Energy analysts have noted that the Hormuz corridor, through which roughly one-fifth of global oil trade flows, remains effectively compromised. While producers like Chevron and ConocoPhillips benefit from higher price realizations in the near term, the sustained disruption raises the risk of demand destruction in price-sensitive markets and increases regulatory and political pressure on consuming nations to respond.