TotalEnergies expects a milder second-quarter hit from the war in the Middle East than previously expected after it restarted production in some of the region's countries. The French energy major had initially projected a steeper decline in output due to the conflict, which disrupted operations across several nations. However, the company said it has been able to resume activity at certain sites, lessening the anticipated impact on quarterly volumes.

The revision comes as a relief to investors who had braced for a larger production shortfall. TotalEnergies did not specify which countries have seen restarts, but the broader region remains tense. The war, often referred to as the Iran conflict, has created uncertainty for energy firms operating in the area.

Analysts caution that the improved outlook is contingent on stability. Any escalation could quickly reverse the gains. TotalEnergies emphasized that it continues to prioritize safety and will adjust plans as needed. The company's ability to adapt highlights the resilience of its regional portfolio.