Exxon Slashes Output 6% as Mideast Conflict Damages Gulf Operations

Key Details Exxon Mobil reported a 6% loss in global production during the first quarter after Iranian missile strikes damaged critical infrastructure in the Persian Gulf region. Two liquefied natural gas production lines at a Qatar facility operated by Exxon partners sustained significant damage, with company officials stating repairs will require a prolonged timeline. Why It Matters The Persian Gulf normally accounts for roughly one-fifth of Exxon's global output. The energy supermajor joined Shell in disclosing war-related impacts on Middle East assets, signaling the conflict's broader threat to energy supplies. Industry analysts note the region's reputation as a stable investment hub has been severely damaged. Financial Impact Exxon's energy-products division will see earnings reduced by $3.7 billion in Q1 due to price volatility and cargo timing issues. However, the company expects about $2.1 billion in gains from higher crude prices and $400 million from increased gas prices. Qatar's Woods facility could lose $20 billion in annual revenue and require up to five years for full repair. Market Response Exxon shares fell 6.1% in pre-market trading as energy stocks declined broadly following a ceasefire announcement. The company will release complete quarterly results on May 1.