War on Iran Weighs on Output of Major US Oil Companies

(MENAFN) Two of the largest American energy corporations have reported declines in production and financial setbacks tied to the ongoing conflict involving Iran, pointing to operational disruptions and heightened market instability, according to regulatory filings and reports.

One company indicated in a filing to US authorities that it could face an earnings impact of up to $6.5 billion. It also noted that its global oil and gas output for the first quarter of 2026 is expected to drop by around 6% compared to the final quarter of 2025. The decline is partly attributed to damage affecting facilities in Qatar and the United Arab Emirates, where it maintains significant investments.

Meanwhile, another major producer reported first-quarter output ranging between 3.8 and 3.9 million barrels of oil equivalent per day, a decrease from approximately 4.05 million barrels per day in the previous quarter.

The company with broader exposure to the Middle East emphasized that the region contributes roughly one-fifth of its total global production. It also acknowledged that infrastructure damage—particularly at gas processing and liquefaction sites in Qatar—“will take a prolonged period to repair,” adding that it remains unclear when operations will fully return to normal levels.

In addition to physical disruptions, the company highlighted that fluctuations in energy prices driven by the conflict are expected to significantly affect its financial results. It estimated that between $3.5 billion and $4.9 billion of the projected earnings impact for the first quarter is linked to market volatility.

According to economic assessments cited in reports, extended disruptions to shipping through the Strait of Hormuz, combined with elevated energy prices, could contribute to rising inflation and slower economic growth worldwide. This risk is considered particularly significant for countries that rely heavily on imported fuel. One official involved in global economic discussions noted that it may take months for energy markets to stabilize following the shock.

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