Iran War Erodes Exxon, Chevron Profits Even as Oil Prices Soar

The surge in oil and natural gas prices from the Iran war might seem like good news for the world’s biggest energy companies, but disruptions to production in the region, shipping blockades and hedging losses make the reality far more complicated.

Exxon Mobil Corp. and Chevron Corp. lost about 6% of their global production in the first quarter, while Shell Plc’s gas output was 5% lower, largely because the Strait of Hormuz has been essentially closed. It comes after just one month of fighting in the region, indicating that the hit could be far more severe if the waterway ...