Buckle Up
Buckle Up
May 7, 2026
Chevron's CEO Mike Wirth said the quiet part out loud this week. With the Strait of Hormuz still closed, the buffers that have been keeping oil flowing — commercial stockpiles, shadow fleet tankers, strategic reserves — are running out. He compared it to the 1970s. Spirit Airlines already folded over jet fuel costs. Brent closed at $113 and change.
What that means for the rest of us is pretty simple. Everything is about to get more expensive. And it's hitting at a time when we're already stretched. Housing is high relative to wages, food is high relative to wages, and now energy is going to push on every link in the supply chain — trucking, manufacturing, ag, you name it.
On the plus side, this probably keeps the Fed from cutting rates anytime soon, which I think is the right thing to do anyway. That might strengthen the dollar in the short run. But I'm not sure foreign buyers are going to keep loading up on treasuries through this. The bond market has been under pressure for a while as countries look to trim their dollar exposure, and a global supply shock isn't exactly a reason to lean in. Gold seems like the more likely hedge. We'll see.
Crazy times. Complicated geopolitics. Hard assets are looking better and better. Buckle up.
Source: Chevron CEO sends blunt message on oil and the economy — TheStreet, May 5, 2026.