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May 4, 2026 12:10 PM

Exxon Mobil: Full Impact Of Strait Of Hormuz Closure Is Yet To Be Felt

Shares of Exxon Mobil Corp (NYSE:XOM) rose slightly in early trading on Monday, after tanking on Friday following the company's mixed first-quarter (Q1) results.

The U.S.’s war in Iran negatively affected the company's volumes in Q1. The closure of the Strait of Hormuz, resulting from the conflict, will adversely affect Q2 production, according to JPMorgan analyst Arun Jayaram.

The Exxon Mobil Analyst: Jayaram reiterated an Overweight rating, while raising the price target from $170 to $173.

The Exxon Mobil Thesis: The decline in Middle East volumes negatively impacted the company's Q1 earnings by $430 million, or 10 cents per share.

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Exxon Mobil noted upstream production could decline by 750 MBoe/d (million barrels of oil equivalent per day) and result in 3% lower throughput for Product Solutions in the second quarter if the Strait of Hormuz remained closed for the entire quarter, Jayaram said.

CEO Darren Woods said that the market was yet to feel the full impact of the Strait of Hormuz closure. So ...