Exxon Mobil CEO Darren Woods confirmed on March 11 that the company has evacuated non-essential employees from its Middle East operations. The firm is also scaling back production at certain fields to manage oil inventory levels.
Logistics through the Strait of Hormuz have become increasingly challenged due to the escalating U.S.-Israel war on Iran. These export constraints are forcing producers to reduce output as regional storage capacity reaches its limit.
The Middle East accounts for approximately 20% of Exxon's total oil and gas production. Furthermore, the region represents nearly 60% of the company’s liquefied natural gas business.
Exxon has not yet detailed the specific impact on its production volumes or financial performance. Market reactions to the development were not immediately available.