Exxon CEO expects Strait of Hormuz to reopen, but warns oil flows need months to recover

The world’s most important oil chokepoint has been closed since early April, and the CEO of one of the world’s largest energy companies says don’t expect things to snap back to normal overnight. ExxonMobil’s Darren Woods, speaking on the company’s Q1 2026 earnings call on May 1, said the Strait of Hormuz would likely reopen but that oil flows would need a month or two to fully normalize after that happens. Why the Strait of Hormuz is the oil market’s single point of failure Think of the Strait of Hormuz as the world’s most critical energy corridor, roughly 21 miles wide at its narrowest point, connecting the Persian Gulf to the rest of the global oil market. Nearly 20% of global oil and LNG trade passes through it. The strait has been effectively shut since early April following the escalation of conflict involving Iran, and the market has felt it. Oil prices on May 1 were swinging between $101 and $108 per barrel. Woods noted on the call that the market had not yet fully priced in the scale of the disruption. Even after a shipping lane reopens, tankers need to be repositioned, insurance underwriters need to reassess risk ratings, and buyers need to rebuild confidence in route reli...