Exxon and Chevron Report Lower Q1 2026 Profits Amid Iran War Impact The two largest U.S. oil companies, Exxon Mobil and Chevron, reported significantly lower profits in the first quarter of 2026 compared to the same period last year, despite a sharp rise in global oil prices driven by the ongoing conflict with Iran. The companies’ financial performance was heavily impacted by unfavorable timing of their hedging strategies, which were designed to mitigate price volatility but instead exacerbated losses due to the sudden and severe disruption of oil supplies. While both companies beat Wall Street’s earnings expectations, their net income declines underscore the challenges posed by the geopolitical crisis. Oil prices surged by 57% in the quarter following the U.S. and Israeli military strikes on Iran on February 28, which triggered the largest oil supply disruption in history. However, this surge did not translate into substantial profits for Exxon or Chevron. Exxon’s net income dropped 45% year-over-year to $4.2 billion, or $1.00 per share, while Chevron’s profit fell 36% to $2.2 billion, or $1.11 per share. The companies attributed these declines primarily to the adverse effects of their financial hedges, which were executed before the war began but proved costly as oil prices spiked unexpectedly. Exxon’s earnings were further complicated by a $4 billion loss from unfavorable hedging positions, which the company described as a “timing effect.” The issue stemmed from the fact that the product shipments hedged during the quarter were not yet delivered, so their value was not recognized in the financial results. Additionally, Exxon recorded a $700 million charge from closed hedges that could not be offset by physical deliveries due to the Middle East disruption.#iran_war #strait_of_hormuz #exxon_mobil #chevron #mike_wirth
Oil Price Briefly Hits $120 After Reports of 'Extended' Iran Blockade Crude oil prices surged above $120 per barrel on Wednesday, briefly reaching $122, the highest level since 2022, following reports that the U.S. is preparing for an extended blockade of Iran. The global benchmark, Brent crude, climbed sharply as traders interpreted recent developments as a signal that the closure of the Strait of Hormuz would persist. Energy executives, including Chevron CEO Mike Wirth, met with U.S. President Donald Trump at the White House to discuss strategies to mitigate the impact of the conflict on American consumers. The meeting, described as part of Trump’s routine engagement with industry leaders, covered topics such as domestic energy production, Venezuela, oil futures, and shipping. Separate reports from the Wall Street Journal indicated that Trump had instructed aides to prepare for an extended blockade of Iran’s ports, aiming to pressure Tehran’s economy. Iran has vowed to continue disrupting maritime traffic through the Strait of Hormuz, which carries about a fifth of the world’s oil and liquefied natural gas. The strait has been effectively closed for weeks due to the conflict, with Iran restricting shipping in response to U.S. and Israeli strikes that began on February 28. Earlier this month, Tehran warned that any vessel approaching the strait would be targeted, prompting the U.S. to announce plans to intercept or divert ships traveling to or from Iranian ports. Analysis revealed that at least four vessels from Iranian ports had crossed the U.S. blockade line, though the price of oil has remained significantly higher than pre-conflict levels.#iran #donald_trump #strait_of_hormuz #white_house #chevron
Gas prices surge across Southern California as Los Angeles County hits $5.17 per gallon amid escalating tensions in Iran Gas prices have spiked dramatically across Southern California, with the statewide average surpassing $5 per gallon and some stations charging over $8 at the pump. In Los Angeles County, the average price climbed to $5.17, a 17-cent increase in a single day. Orange County saw prices at $5.15, while Riverside County reported $5.06. The surge has left drivers frustrated, particularly those reliant on gasoline for daily commuting. “I drive Uber and I’m just getting killed right now,” said one driver, noting that gas prices are “so high” even before the recent war in Iran. Another driver, Michale Terry, expressed hope for relief, stating, “I really can’t do nothing but complain.” The disparity in pricing is stark, with some stations offering significantly lower rates. At the American Oil station in Exposition Park, gas hovered just above $4 per gallon, prompting driver Deejay Brown to remark, “I’m always searching for cheaper gas, so right now that’s how Los Angeles working.” However, just a few miles away, a Chevron station in downtown Los Angeles charged $8.21 per gallon, leaving drivers stunned. “It’s insane, insane work… it’s too too high,” said Denise Rodriguez, who vowed not to use the station. Matt Jozwiak, visiting from New York, added, “I just actually could not believe my eyes when I saw that $8—that is wild.” Experts attribute the price surge to California’s strict regulatory policies and reduced in-state gasoline production. These factors, combined with the ongoing conflict in Iran, have exacerbated supply chain issues and driven costs upward. GasBuddy.com continues to serve as a resource for drivers seeking the cheapest prices in their area.#chevron #los_angeles_county #american_oil #exposition_park #gasbuddy_com
The Week That Was, The Week Ahead: Macro and Markets, Mar. 8 U.S. stocks ended the week lower as geopolitical tensions in the Gulf and a disappointing jobs report weighed on investor sentiment. The S&P 500 fell 1.98%, the Nasdaq 100 dropped 1.24%, and the Dow Jones lost 2.95%. The 10-year Treasury yield climbed to 4.14%, while gold rose to $5,173, oil surged to $91.27, and Bitcoin dipped near $68,000. Energy stocks gained alongside rising oil prices, while travel and cyclical sectors lagged due to higher fuel costs and weaker job market data. The Gulf region remained a focal point as war risks near the Strait of Hormuz disrupted shipping and drove oil prices to a weekly high of over 35%. Tanker traffic dropped nearly 90% as shipping companies rerouted cargo, pushing oil near $90 per barrel. Energy firms like Exxon Mobil and Chevron saw gains, while airlines such as United and Delta fell as fuel costs spiked. The U.S. jobs report further dampened optimism, showing a loss of 92,000 jobs in February—far below the 55,000 gain expected. The unemployment rate rose to 4.4%, and prior job gains were revised downward by 69,000. Analysts warned of a soft labor market, with one noting that the sector couldn’t withstand a strike of 31,000 physicians without broader hiring weakness. The data boosted speculation of a potential Fed rate cut in June, with odds rising to 67%. Meanwhile, AI and tech developments dominated market discussions. Nvidia reported a record quarter and announced $2 billion investments in optical component suppliers to support AI data centers. Broadcom also beat expectations, with AI revenue doubling to $8.4 billion and a $10 billion buyback plan.#strait_of_hormuz #exxon_mobil #chevron #united_airlines #delta_airlines
