US energy giants report fallout from Middle East war

Exxon and Chevron have both disclosed production declines which resulted from the Iran conflict

US energy giants ExxonMobil and Chevron have reported lower production and a financial fallout linked to the Iran war, citing operational disruptions and market volatility as a result of the conflict and restrictions on the Strait of Hormuz regarding shipping linked to the West.

In a filing to US regulators on Wednesday, ExxonMobil flagged a potential hit of up to $6.5 billion to earnings, noting that its global oil and gas production in the first quarter of 2026 will be about 6% lower than in the final quarter of 2025, partly due to attacks on facilities in Qatar and the UAE in which it holds stakes. Chevron on Thursday reported first‑quarter production of 3.8–3.9 million barrels of oil equivalent per day, down from 4.05 million in the previous quarter.

Exxon, which has significant exposure to the Middle East, said the region accounts for around 20% of its global output. It added that damage to assets, including gas liquefaction facilities in Qatar, “will take a prolonged period to repair,” and that it is unable to estimate when full operations will resume.

The company also said the largest hit to its first-quarter earnings, estimated at $3.5 billion to $4.9 billion, is linked to price swings caused by the conflict.

READ MORE: Energy crisis will last for months – Kremlin envoy

The disclosures come as economists warn that a prolonged disruption in the Strait of Hormuz and higher energy costs could fuel broader inflation and slow growth, particularly in fuel‑importing economies. Kremlin envoy Kirill Dmitriev has said global energy markets will take months to recover from the shock.