Chevron CEO warns of the 'very real' risk of disruption to oil supply in the Red Sea, which could cause oil prices to change rapidly.

• Chevron CEO Michael Wirth stated that the crisis in the Red Sea is a very serious matter that appears to be deteriorating.
• Wirth expressed surprise that U.S. crude oil was trading below $73 a barrel, stating that the "risks are very real."
• Wirth stated that Chevron has continued transporting crude in the region while closely collaborating with the U.S. Navy's Fifth Fleet.

If tensions escalate in the Middle East, the crisis in the Red Sea could lead to a major supply disruption, which could result in a rapid change in oil prices, according to CEO Michael Wirth, who spoke to CNBC on Tuesday.

In an interview at the World Economic Forum in Davos, Switzerland, Wirth stated that the situation is extremely grave and appears to be deteriorating further.

The CEO of Chevron expressed surprise that U.S. crude oil was trading below $73 a barrel, stating that the "risks are very real."

If the oil flow through that region were to be cut off, things would change very rapidly, Wirth stated.

Wirth stated that Chevron has been transporting crude in the region while closely collaborating with the U.S. Navy's Fifth Fleet. However, he warned that the situation is constantly changing.

“We really have to watch very carefully,” Wirth told CNBC.

Shell suspends Red Sea shipments

Shell has halted oil shipments through the Red Sea, according to sources. The company refused to comment on the matter when asked by CNBC.

Shell has stopped shipping through a vital trade route a month after it paused transits through the Red Sea. Several major tanker companies, which transport petroleum products including gasoline and crude oil, halted traffic toward the Red Sea on Friday.

Houthi militants, backed by Iran, have frequently targeted commercial ships in the Red Sea in retaliation for Israel's Gaza conflict. In response, the US and Britain have conducted airstrikes on Houthi targets in Yemen to safeguard shipping traffic through the waterway.

Despite U.S.-led strikes, the Houthis have persisted in launching attacks. On Tuesday, militants launched an antiship ballistic missile that hit a Maltese-flagged bulk carrier in the Red Sea, according to CENTCOM. No injuries were reported and the vessel continued to transit the waterway.

Sullivan: Houthis are hijacking the world

Jake Sullivan, the U.S. National Security Advisor, stated that countries with influence in Iran must take a stronger stance to show that the entire world rejects the notion that a group like the Houthis can control the world as they are currently doing.

Last week, the U.N. Security Council passed a resolution strongly condemning the Houthi attacks, but China and Russia, who have veto power, did not vote on it.

Sullivan stated in an interview in Davos on Tuesday that we expected the Houthis to persist in attempting to endanger this vital route, and we retain the option to take additional measures; however, this requires a collective effort from everyone involved.

If a regional conflict disrupts crude oil flows out of the Strait of Hormuz, the biggest risk to energy supplies would come from the Middle East, according to oil market and geopolitical analysts.

According to Kpler's data, 7 million barrels of crude oil and products are transported daily through the Red Sea, compared to the 18 million barrels that transit the Strait of Hormuz.

Though unlikely, Goldman Sachs has warned that a prolonged disruption in the Strait of Hormuz could double oil prices.

Last year, two Chevron ships were attacked by the Iranian Navy, with one being hijacked and taken to an Iranian port and the other taking fire for four hours until the U.S. Navy intervened.

Last week, Iran seized an oil tanker in the Gulf of Oman, which was previously involved in a dispute between the U.S. and Iran over sanctioned crude.