Exxon and Chevron Earnings Drop After Iran Attack

Exxon Mobil and Chevron both reported lower earnings as oil shipments were disrupted following a U.S. and Israeli attack on Iran on February 28. The strike sent oil prices sharply higher after two months of depressed prices, squeezing the companies' margins during the quarter before the spike took effect. The disruption to Iranian oil flows created supply uncertainty that rattled global energy markets, though the full financial impact on either company depends on how long the disruption lasts and how much of their production or trading exposure was affected during the period. Investors and analysts will be watching whether the price spike sustained itself long enough into the quarter to offset the earlier weakness in earnings. The situation also raises compliance and logistics questions for refiners and shippers who rely on routes through the region.