Exxon Mobil and Chevron reported sharply lower year‑on‑year profits in the first quarter, the two largest U.S. oil companies said, after deliveries were disrupted by the closure of the Strait of Hormuz amid the war with Iran. The companies’ earnings were significantly hurt by supply outages tied to the regional conflict.
The disruption reduced flows through the key Gulf chokepoint, cutting deliveries that underpin upstream production and downstream refining margins. Both firms flagged the impact on results for the quarter, with management attributing the decline primarily to the supply shortfalls.
The development underscores how geopolitical tensions in the Gulf can quickly translate into earnings swings for major integrated oil producers. #XOM #CVX #Oil #StraitOfHormuz #FiatNews
The disruption reduced flows through the key Gulf chokepoint, cutting deliveries that underpin upstream production and downstream refining margins. Both firms flagged the impact on results for the quarter, with management attributing the decline primarily to the supply shortfalls.
The development underscores how geopolitical tensions in the Gulf can quickly translate into earnings swings for major integrated oil producers. #XOM #CVX #Oil #StraitOfHormuz #FiatNews