U.S. Oil & Gas giant Exxon Mobil (NYSE:XOM) has signaled that surging oil and gas prices triggered by the conflict with Iran could increase its first-quarter upstream earnings by up to $2.9 billion, with the oil price boost expected to outweigh production disruptions in the Middle East.
Exxon estimates that disruptions to its assets in the United Arab Emirates and Qatar will lower its global oil-equivalent production by 6% in the first quarter compared to Q4 2025, but higher commodity prices are projected to provide a profit lift between $2.1 billion and $2.9 billion compared to the previous quarter. Attacks in Qatar impacted two LNG trains, which represented roughly 3% of Exxon’s 2025 upstream production. Exxon is scheduled to report its full Q1 2026 results on May 1, 2026.
Exxon has announced that downstream earnings could face a temporary reduction of $3.3 billion to $5.3 billion, primarily due to “unusually large, negative timing effects” related to derivatives and shipping. The company also expects to record a one-time impairment of $600 million to $800 million due to war-related shipping disruptions. However, Exxon CFO Neil Hansen has stated that these effects are temporary, and profits will “unwind” and transform into material gains in later quarters once physical shipments reach customers.
Meanwhile, Exxon could also benefit from non-fossil fuel tailwinds. UBS has reiterated its Buy rating and $171 price target for ExxonMobil (XOM), driven by anticipated profit gains from a global helium shortage.
According to the Wall Street analyst, the disruption of Middle Eastern supply positions enables Exxon to gain from higher prices and increased demand for its secure, non-Qatari helium supply after military strikes on Qatar’s Ras Laffan complex in March 2026 sidelined approximately 31% of global helium production.
The closure of the Strait to Western commercial shipping has effectively cut off Middle Eastern helium exports, which must be transported in specialized cryogenic ISO containers by sea. Exxon’s LaBarge, Wyoming, facility is seen as being critical to meeting global demand for high-tech industries, including semiconductors and medical imaging. On Wednesday, a tentative and highly fragile U.S.-Iran ceasefire deal saw Brent crude plunge to $92/barrel and reports emerge of two vessels braving the Strait of Hormuz in a test-case for a sustainable cessation of hostilities that traders will likely be eyeing with a fair amount of skepticism.
By Alex Kimani for Oilprice.com
More Top Reads From Oilprice.com
- India’s Coal Power Demand Set for 11.5% Jump in April-June
- India Set to Import First Iranian Oil in 7 Years
- European Natural Gas Futures Slump by 20% on Ceasefire Relief
