ExxonMobil: Iran War to Impact 6% of Firm’s Global Output

SECAUCUS, NJ (DTN) – ExxonMobil announced Wednesday (4/8) that it expects a 6% drop in global production for the first quarter of this year as the conflict in the Middle East impacts output at the world’s largest publicly-traded energy company.

“The Middle East assets represent approximately 20% of our global oil-equivalent production, but a smaller percentage of upstream earnings,” ExxonMobil said in a regulatory filing.

It said certain assets in Qatar and the UAE, in which ExxonMobil held ownership interests, experienced production disruptions beginning in March, following the February start of U.S.-Israel airstrikes against Iran.

“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,” ExxonMobil said in the filing.

Breaking down the impact on its production, ExxonMobil said damage to a liquefied natural gas complex in Qatar accounted for half of the reported outages. It said missile strikes impacted two LNG production trains that accounted for approximately 3% of its 2025 upstream production, and repairs will likely require a prolonged period to complete.

Refining and trading segments are expected to see a combined earnings hit of up to $5.3 billion, ExxonMobil said, adding that “unusually large” negative timing impacts and inability to deliver physical shipments factored into the losses.

The company expects to record an impairment of $600 million to $800 million as a result of failed deliveries alone.

ExxonMobil is scheduled to release its full quarterly financial results on May 1.

The Trump administration announced a two-week ceasefire Tuesday between the U.S., Israel, and Iran to negotiate an end to the monthlong conflict. The Strait of Hormuz, blockaded by Iran for most of the 40-day duration of the war, will be reopened, officials said, restoring passage for 20 million bpd of petroleum liquids.