Exxon, Chevron profits slide even as oil prices surge

Oil prices surged, but Exxon and Chevron still stumbled.

The two US energy giants reported sharp drops in quarterly profit even as crude prices climbed, underscoring how conflict can rattle the industry long before it rewards it. According to reports, stalled deliveries and supply disruptions tied to the Iran war weighed on results in the first quarter. Exxon said earnings fell to $4.2bn from roughly $7.7bn a year earlier, a drop of about 46%. Chevron posted $2.2bn in profit, down from about $3.5bn, a decline of roughly 37%.

The numbers capture a familiar but uncomfortable truth for oil majors: higher prices do not always translate into instant gains. When war disrupts shipping, delays cargoes, and scrambles supply chains, companies can lose ground before the market hands them any pricing upside. This quarter appears to reflect that early shock. The benefit of stronger crude prices may still arrive later, but the immediate hit landed first.

Soaring crude prices created opportunity, but supply disruption hit Exxon and Chevron before that upside could fully show up in earnings.

Investors, however, found a reason to stay calm. Both companies beat Wall Street expectations, suggesting the damage, while significant, did not run deeper than the market feared. That distinction matters. It signals that even in a volatile quarter, the largest players in the sector still managed to perform better than analysts had projected, a sign of resilience in an industry built to navigate shocks.

What comes next will depend on whether disruption eases or spreads. If supply routes stabilize and high oil prices hold, Exxon and Chevron could yet capture the benefits that eluded them this quarter. If turmoil deepens, the same forces that pushed crude higher could keep straining operations. For markets, consumers, and policymakers, these earnings offer a clear reminder: in energy, geopolitical risk can inflate prices and erode profits at the same time.