Investing.com -- The oil futures market has not fully accounted for the supply disruption caused by the closure of the Strait of Hormuz, Chevron CEO Mike Wirth said Monday.

Wirth told attendees at S&P Global's CERAWeek conference in Houston, Texas, that physical oil supply is tighter than futures contracts indicate.

"There are very real, physical manifestations of the closure of the Strait of Hormuz that are working their way around the world and through the system that I don't think are fully priced into the futures curves on oil," Wirth said.

The U.S. oil contract for August delivery is trading around $80 per barrel, suggesting the market expects the disruption to ease in the coming weeks and months.

Wirth said the market is trading on scant information and perception. He added that substantial volumes of oil and gas are currently not flowing into the market.

"There really is a difference in terms of physical supply this time versus prior incidents," the Chevron CEO said.

About 20% of world oil supplies flowed through the Strait of Hormuz before the war started. The narrow sea route connects the Persian Gulf to the global market. Oil tanker traffic has basically come to a halt due to Iranian attacks on commercial shipping.

Gulf Arab producers have reduced output because they cannot export through the strait. Iranian missile and drone attacks have also damaged energy infrastructure in the Middle East. Some governments are imposing policies to hold stocks domestically and reduce exports, Wirth said.

Wirth said it will take time to rebuild inventories even if the Strait reopens. He added that uncertainty remains about how quickly production can return online.

Oil prices fell 9% on Monday after President Donald Trump told CNBC that he is very intent on making a deal with Iran. Trump postponed strikes on Iran's power plants for five days after talks with Iran that he described as productive.