ExxonMobil, Shell Report Big Hits From Iran Conflict
ExxonMobil CEO Darren Woods famously deemed Venezuela’s energy sector to be “uninvestible” in his company’s view during a White House meeting on January 9. On Monday, J.P. Morgan raised similar doubts about energy projects in the Middle East, saying the Iran Conflict “has upended the perception of the Gulf as a safe and investable hub.” In an interesting twist, Exxon’s admission of the big hit it has incurred to its overall production due to that conflict lends support JPM’s assessment.
ExxonMobil Estimates a 6% Hit to Global Volumes
In a supplement to its Q1 2026 earnings disclosures published April 8, Exxon estimates that disruptions related to the closure of the Strait of Hormuz and related infrastructure damages will create a substantial reduction of its overall production. “Certain assets in Qatar and the UAEUAE in which ExxonMobil holds ownership interests experienced production disruptions beginning in March. As a result, the Company expects Middle East disruptions to lower global oil-equivalent production by approximately 6% in first quarter compared with fourth-quarter 2025,” the disclosure reads in part.
Roughly half of the reduction can be attributed to Iran’s missile attacks on Qatar’s Ras Lafan LNG facility in early March, in which Exxon owns interests in two processing trains. Qatar declared a force majeur and shut the facility down on March 4. The government currently estimates full repairs will take 3 to 5 years to complete.
