The chief executive of U.S. oil giant Chevron on Wednesday warned that it would be "unwise" for the Trump administration to move forward with a diesel export ban, saying the policy risks worsening the supply situation.
"Export bans, be they in the U.S. or in other countries, actually take supply off the global market and they run the risk of making the situation worse," Chevron CEO Mike Wirth told CNBC's "Squawk Box Europe" in an exclusive interview on Wednesday.
"The U.S. has been a reliable supplier to the world at a time when it needs it," he continued. "And I think it would be unwise for the U.S. to create questions in the minds of our allies and our partners as to whether or not we will be there with reliable supply when times are difficult — and so, there are other options."
His comments come as rising Middle East crude exports and an emergency G7 stockpile release appear to have helped to ease supply fears, although energy market participants remain on edge as Saudi Arabia and Iran-backed Houthi forces exchange attacks.
The U.S.-Iran war has severely disrupted shipping through the Strait of Hormuz, a narrow waterway that typically handles around 20% of the world's oil and liquefied natural gas supplies, sending shock waves through the global economy.