Venezuela Deal and Iran Conflict Send Oil Prices Soaring

The energy sector surged on Monday as two major oil catalysts converged, sending stocks like Chevron and Exxon higher. The US-Iran conflict and a deal between the US and Venezuela to control over 65 billion barrels of oil reserves are creating conflicting views among investors.

Chevron CEO Mike Wirth noted that the impact from the Middle East conflict was isolated to a small region, affecting only about 1% of second-quarter total production. The company reported $12.1 billion in earnings and reduced debt by over $8 billion in the quarter.

Exxon's Q1 report revealed losses tied to Middle East supply disruptions, with CEO Darren Woods prioritizing employee safety above all else. Halliburton saw a 16% one-month rally after reporting Middle East and Asia revenue down 2% sequentially due to activity disruptions in Kuwait, Iraq, and Qatar.

President Trump's announcement of the US-Venezuela deal adds a long-horizon reserves story, but it may take years for Venezuelan infrastructure to recover. The US has agreed to control over 65 billion barrels of oil reserves, with Chevron being the most direct beneficiary given its joint ventures with PDVSA.