ExxonMobil warned investors of a potential $6.5 billion hit to first-quarter earnings stemming from the Iran war. However, the company clarified that the majority of this loss stems from unfavorable timing in accounting for its hedging contracts, not from actual physical disruptions. The CFO emphasized these timing effects are temporary and will reverse as underlying transactions settle. Exxon's Middle East exposure is substantial, accounting for roughly 20% of its global oil and gas production and 5% of refining capacity.

Recent attacks on facilities in Qatar and the UAE, where Exxon holds stakes, caused $400 million to $800 million in lower production and $600 million to $800 million in trading losses. Physical disruptions are expected to be resolved over time, but the immediate earnings impact is largely due to the surge in oil prices following the February 28 conflict. Excluding these timing effects, Exxon stated first-quarter earnings would actually be higher than the previous quarter. Despite this, shares fell 5% pre-market on Wednesday, reacting to the ceasefire deal news.