Iran War Threatens Oil Companies' Gulf Investments Amid Price Surge

The six-month conflict between the US and Iran has led to significant profits for major US oil companies, but their investments in the Gulf region are at risk due to ongoing attacks on energy facilities.

Brent crude prices have risen by 22% since the war began, reaching $88 a barrel. However, this increase has come with a cost: the disruption of commercial traffic through the Strait of Hormuz, which accounts for one-fifth of the world's oil and natural gas shipments.

Rahul Choudhary, vice president of Upstream Research at Rystad Energy, notes that US companies' share of gas supplies from the region is expected to fall by 40% this year compared to last year, while oil supplies are likely to drop by 30-35%. This prolonged disruption could delay major projects and weigh on future growth plans.

Chevron has limited exposure to Arab Gulf supply disruptions, but ExxonMobil has been more exposed due to the closure of the Strait of Hormuz and attacks on US-linked infrastructure. ConocoPhillips, Occidental Petroleum, and Chevron also have significant investments in the region.