America
Chevron CEO warns of physical oil scarcity as Strait of Hormuz tensions escalate
Mike Wirth, the CEO of US energy giant Chevron, warned on May 4 that a physical shortage of crude oil is beginning to take hold, driven by the closure of the Strait of Hormuz and the broader impacts of the military conflict involving the US, Israel, and Iran.
Speaking at an industry event, Wirth provided a stark assessment of the global energy landscape. “We are going to start seeing physical scarcity,” Wirth said. “Demand must adjust to supply. Economies will have to slow down.”
Wirth noted that Asian economies, which maintain the highest dependency on Persian Gulf energy production, would be the first to suffer the consequences. He indicated that Europe would be affected next. While the US is expected to be less severely impacted, Wirth added that it would not remain entirely immune to the escalating crisis.
The Chevron executive further disclosed that the final scheduled shipment of crude oil from the Gulf is currently being discharged at the Port of Long Beach, a critical facility serving Los Angeles and Southern California.
Wirth characterized the situation in the Strait of Hormuz as having the potential for an impact “as large as the 1970s,” specifically referencing the 1973 Arab oil embargo.
The timing of Wirth’s remarks coincides with a period of daily escalations in the strategic waterway between Washington and Tehran. Since the cessation of the ceasefire, the US has maintained a blockade of Iranian ports. Tehran, in response to Washington’s seizure of Iranian vessels near the Strait, recently seized several ships and warned of further retaliatory measures.
On Monday, Iranian forces launched two missiles at a US warship near the Strait and subsequently targeted energy infrastructure in the United Arab Emirates. The US military announced it had struck Iranian military speedboats; however, Iranian state media reported that five civilians aboard a cargo vessel were killed in the strike.
In the wake of these developments, global oil prices have resumed an upward trajectory. Brent crude, the international benchmark, surged 6% to reach $114.44 per barrel. As of May 5, the price remains positioned just below the $114 mark.
Several nations have already moved to implement energy rationing due to the crisis triggered by the US-Israel conflict with Iran, which began in late February. Countries currently facing energy restrictions include the Philippines, Sri Lanka, Myanmar, Thailand, Nepal, and Bangladesh.
A massive anticipated shortage in fertilizer is also projected to severely impact developing nations. Svein Tore Holsether, the CEO of fertilizer major Yara, told the BBC last week that the current situation places billions of meals at risk.
“Because of the situation we are in, up to half a million tons of nitrogen fertilizer is currently not being produced globally,” Holsether said. “What does this mean for food production? I would say that up to 10 billion meals every week could fail to be produced as a result of the fertilizer shortage.”
Holsether added that while the fertilizer market is global in scope, with products moving across the planet, the primary destinations are Asia, Southeast Asia, Africa, and Latin America. He emphasized that these regions would experience the most immediate effects, noting that Sub-Saharan Africa could face a particularly severe impact.
America
World Cup referee from Somalia denied entry to US as immigration scrutiny intensifies
The obstacles imposed by the United States government on African and Middle Eastern referees and football players designated to work at the World Cup are drawing widespread scrutiny.
In the latest development, a World Cup referee from Somalia was denied entry into the United States. US Customs and Border Protection (CBP) stated on Monday that Omar Artan was turned away over the weekend upon landing in Miami on a flight from Istanbul.
CBP did not disclose the specific reason the referee was barred from entry, but Somalia is among approximately 40 countries subjected to enhanced screening or travel restrictions under policies enacted by President Donald Trump.
“Following inspection, it was determined that the passenger, a FIFA World Cup referee, was inadmissible due to security screening, and admission to the United States was denied,” CBP said.
FIFA confirmed it was aware of the US decision to block Artan’s entry and indicated that his status would not change for the time being.
“As has been the case with previous FIFA events, the host government ultimately decides who receives a visa and who is admitted into the country,” the governing body said in a statement.
While this is the first known instance of a World Cup referee being barred from entry by US immigration authorities, several players, coaching staff, and numerous fans have previously encountered difficulties entering the country.
The US State Department said it is working in coordination with the White House, the Department of Homeland Security, and FIFA to support visa processing for World Cup participants, but emphasized that it must simultaneously enforce US laws and administration policies.
“The administration will never compromise on applying US law and the highest standards of national security and public safety in the administration of the visa process,” the State Department said in a statement.
Artan, a former football player who transitioned to refereeing due to injuries, was set to become the first individual from his country to officiate at a World Cup.
In an interview with Al Jazeera prior to the tournament, Artan spoke about the challenges he faced in his home country. “You cannot give up. If you want to reach a place like the World Cup, you have to fight,” he said.
Somalia is one of 12 nations whose citizens were effectively banned from entering the US by Trump in December 2025, with the administration citing terrorism risks.
Trump has repeatedly demonstrated open hostility toward the East African nation, previously describing the country as “smelly” and labeling individuals originating from there as “garbage.”
The administration has also revoked temporary visas for thousands of Somali citizens residing in the US and accused members of the Somali diaspora in Minnesota of fraud.
Beyond entry denials, the treatment of participating teams has sparked significant backlash. Members of the Senegal national team were subjected to exhaustive baggage searches directly on the airport tarmac in San Antonio.
Separately, players from the Uzbekistan national team reportedly faced drug-detection dogs and metal-detector sweeps upon arriving at their training facilities in New York.
Footage and photographs of these security checks rapidly circulated on social media, triggering anger among football fans.
Many observers accused American authorities of treating international footballers “like criminals” rather than guests attending one of the world’s premier sporting events.
The controversy intensified further following reports that Iraqi forward Aymen Hussein was detained for seven hours at Chicago O’Hare International Airport.
Additionally, the photographer for the Iraqi national team was reportedly denied entry into the country after undergoing a security screening that lasted approximately 10 hours.
America
US raises Israeli espionage threat to critical level amid surveillance concerns
The US Department of Defense has elevated the threat level associated with espionage by Israeli intelligence services to its highest tier, amid escalating tensions between Washington and West Jerusalem over potential actions against Iran.
The Pentagon is deeply concerned about an increase in Israeli intelligence operations targeting the US, NBC News reported, citing sources within the Department of Defense.
According to these sources, the Defense Intelligence Agency issued a new threat assessment document after Israel intensified its espionage activities. These operations reportedly aimed to monitor decisions regarding the conflict in the Middle East, as well as internal deliberations within US President Donald Trump’s team.
The document raises Israel’s espionage threat category to the “critical” level.
An official at the Israeli Embassy in Washington told NBC News that the allegations of surveillance targeting the US are entirely false. The official stated that Israel’s intelligence activities focus solely on its enemies, not its allies, and asserted that any claims to the contrary are disinformation or politically motivated.
The Pentagon declined to comment on the developments, while a White House official declared that reports of Israeli surveillance operations are baseless.
In addition to the intelligence dispute, a new debate has emerged regarding the military aid relationship between the two nations. According to a report by The Washington Post, Israeli Prime Minister Benjamin Netanyahu announced his support for a draft resolution introduced by Republican Representative Marlin Stutzman, which proposes altering the format of US military assistance to Israel.
The resolution proposes ending the $3.8 billion in direct annual military aid that the US provides to Israel, requiring Israel to pay the full cost of the US weaponry it purchases.
The current memorandum of understanding on military assistance between the US and Israel, which totals $38 billion, is scheduled to expire in 2028.
While the new resolution submitted to Congress is not legally binding, it reflects the growing debate in Washington over the future of the assistance, amid the war in Gaza and declining public approval ratings for Israel in the US.
The Washington Post reported that Prime Minister Netanyahu issued a statement expressing his desire for Israel to stand on its own feet, noting that the country aims to transition from the status of an aid recipient to that of a partner.
Supporters of the draft resolution argue that the move would transition the US-Israel relationship from a direct aid model to a trade-focused structure, facilitating closer military-technological cooperation.
America
US oil reserves fall to lowest level since 2004 amid Iran war shock
US crude oil reserves have fallen to their lowest level since 2004 as the energy market impacts of the war with Iran continue to expand.
Meanwhile, countries are actively seeking ways to adapt to these shifting conditions. The climate and energy editor at Semafor argued that the energy shock resulting from what is historically the largest supply disruption on record has been felt “quite mildly.”
One strategist noted that the decline in Chinese oil imports has “shielded the rest of the oil market.” Concurrently, new research from the Federal Reserve Bank of Boston indicates that the impact on the US is less pronounced than during the 1970s energy crisis, primarily due to increased domestic oil production.
In a study published yesterday (June 4), Boston Fed researchers stated that an oil shock of the kind triggered by the war with Iran would increase the Personal Consumption Expenditures (PCE) price index by 1.5 percentage points over the following year, compared to a 2.2 percentage point increase in the 1970s.
The researchers pointed out that while such a shock would have reduced employment growth by 1.8 percentage points in the 1970s, this effect has “largely disappeared in recent years.”
For the authors, this development implies that “monetary policy should focus more on the inflationary effects associated with oil shocks rather than the employment effects.”
One reason for this is that “more limited employment effects may generate less deflationary pressure to offset the inflationary impact of higher oil prices.”
According to the study, the impact of rising energy costs on employment currently remains limited because oil-producing states—such as New Mexico, North Dakota, Alaska, Oklahoma, and Texas—are able to record employment growth even as other states experience job losses.
The Boston Fed researchers found that in a scenario resembling the current oil shock, relative employment growth in Texas could increase by approximately 1.7 percentage points, whereas relative employment in Massachusetts could fall by about 0.4 percentage points.
“The world is learning to live without seaborne exports from the Gulf,” Christopher Smart, a US Treasury official during the Obama administration, wrote in an op-ed for The New York Times.
On the other hand, the war has forced Asia and Europe to accelerate their transition to renewable energy. A Bloomberg article reported that in countries particularly dependent on Gulf LNG, such as the Philippines, households have begun generating electricity by installing solar panels on their own properties.
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