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Chevron Profit Soars on Iran War Oil Surge
9 Apr
Summary
- Chevron's Q1 upstream earnings expected to rise $1.6B to $2.2B.
- Surging oil and gas prices linked to Iran war boosted earnings.
- Benchmark Brent crude prices averaged $78.38 per barrel in Q1.
Chevron anticipates a considerable increase in its upstream earnings for the first quarter of 2026, with projections showing a rise between $1.6 billion and $2.2 billion compared to the fourth quarter of 2025. This anticipated financial gain is directly fueled by the dramatic surge in oil and gas prices.
The volatility in energy markets is closely linked to the Iran war, which began on February 28, 2026. This conflict caused oil prices to climb as much as 65%, leading to production shutdowns in some Middle Eastern fields. The Strait of Hormuz, a vital shipping lane for global energy, was effectively closed.
During the first quarter, benchmark Brent crude prices averaged $78.38 per barrel, marking a 24% increase from the preceding three months. Chevron's net oil-equivalent production is expected to range from 3.8 million to 3.9 million barrels per day, though output was impacted by operational downtime at the Tengizchevroil project in Kazakhstan and reduced production in parts of the Middle East.
