CEOs Confront Unprecedented Energy Crisis

• In today’s CEO Daily: Diane Brady covers how energy CEOs are responding to the Iran war.
• The top story: The ripple effects of Mark Zuckerberg’s AI companion.
• Market update: Global markets are mixed as uncertainty lingers over the Iran conflict
• Plus: All the latest news and office watercooler chatter from .

(SeaPRwire) –   Good morning. Global energy leaders are currently gathered in Houston for the annual CERAWeek conference hosted by S&P Global. A key talking point, unsurprisingly, is the effective blockade of the Strait of Hormuz, which has halted 20% of the world’s crude oil and liquefied natural gas supplies, sparking the largest global energy supply shock in history.

As ’s Energy Editor Jordan Blum reports from Houston, Chevron Chief Executive Officer Mike Wirth thinks oil prices might be too low. As Wirth told conference attendees: “The very real physical impacts of the Strait of Hormuz closure are spreading across the global system, and I don’t believe those impacts have been fully reflected in market prices.”

Indeed, hard-hit Asian nations are working to stockpile and conserve energy via remote work policies, school shutdowns, and other measures. The conflict has also disrupted helium and fertilizer supplies, dealing a blow to both chip manufacturers and farmers. (Global stocks and even Bitcoin saw a rally on Monday following news of potential peace negotiations.)

A number of Middle Eastern leaders are not attending the event in Houston this week due to the ongoing conflict: Saudi Aramco CEO Amin Nasser withdrew while others are participating virtually. Sheikh Nawaf Al-Sabah, CEO of state-run Kuwait Petroleum Corporation (KPC), is set to participate virtually today. Ahmed Al Jaber, UAE’s minister of energy and advanced technology and head of Abu Dhabi National Oil Co (Adnoc), gave a virtual address yesterday in which he stated: “Weaponizing the Strait of Hormuz is not an act of aggression targeted at a single country. It is economic terrorism against every nation.”

While U.S. chief executives may not face as direct an impact to their energy supplies, they still have to grapple with a host of other fallout from the conflict. I discussed these impacts with CEOs during our New York dinner last week, as well as some executives traveling to CERAWeek. Some quietly echoed the stance of political leaders who argue that blocking Iran is essential for regional prosperity; others expressed frustration over the costs being imposed on their companies by a war they did not help start. All are managing these repercussions, acknowledging that the fallout could persist long after any peace agreement is finalized. As one person put it: “This war has caused lasting damage to friends and foes alike.”

Make sure to follow Jordan’s reporting on the latest updates coming out of CERAWeek and the Middle East.

Contact CEO Daily via Diane Brady at diane.brady@.com