Exxon Mobil and Chevron reported lower earnings as oil prices stayed weak through early 2025. The two energy giants faced headwinds from depressed crude prices that persisted for the first two months of the year.
That changed abruptly on February 28. The U.S. and Israel launched attacks on Iran, immediately disrupting global oil shipments. The strikes sent oil prices spiking higher, but the damage to both companies' first-quarter results had already been done.
The timing mattered. Most of Exxon and Chevron's Q1 production occurred during the low-price period. They couldn't capitalize on the price spike that arrived too late to help their quarterly numbers. Both companies now face questions about whether sustained tension in the Middle East will support higher oil prices going forward, which could improve their second-quarter and full-year outlooks.
Oil traders are watching the Iran situation closely. Any escalation could tighten crude supplies further and push prices higher, benefiting energy companies. De-escalation would likely reverse those gains.