Global energy markets are once again on edge. Tensions in the Middle East still escalating, oil shipping routes in so much pressure, and major energy companies are being forced to adjust operations in real time. And that includes ExxonMobil (XOM). A 156-year-old oil and gas corporation based in Texas.

The U.S. oil giant confirmed Tuesday it has evacuated non-essential staff from its Middle East operations as the U.S.–Israel war with Iran intensifies and risks around key oil shipping routes grow.

ExxonMobil CEO Darren Woods said the move was primarily about employee safety. But the broader situation highlights how geopolitical tensions are beginning to ripple through global energy supply chains.

So how serious is the disruption, and what could it mean for oil markets?

ExxonMobil scales back operations as Strait of Hormuz tensions grow

ExxonMobil said it has begun scaling back certain operations in the Middle East as shipping disruptions complicate the movement of oil through one of the world’s most important waterways.

Woods said this in an interview, as Reuters reported.

“Our first and highest priority is making sure our people remain safe, and we evacuated folks who weren’t critical or essential to the operations we were supporting.

The issue centers around the Strait of Hormuz. It’s a narrow passage, yes. But that narrow passage carries roughly one-fifth of the world’s oil supply.

Shutterstock. Iran has threatened to attack oil tankers moving through the corridor, prompting concerns that shipments could be disrupted. In fact, that uncertainty has already begun affecting energy logistics.

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More Oil and Gas: According to Woods, oil producers are reducing output at some facilities as storage capacity fills up while exports slow. Why? Because moving crude out of the region has become increasingly difficult.

“The ability to manage inventory becomes very challenged,” Woods said, noting that supply chain bottlenecks are forcing companies to temporarily scale back activity.

The energy firm operates in the region as a minority partner in oil and gas projects in the UAE, Qatar and Saudi Arabia. That makes stability in the shipping corridor critical for its operations.

Why the Middle East remains critical to Exxon’s global business

The Middle East still plays a major role in Exxon’s production footprint. A huge one actually. Analysts estimate about 20% of the company’s oil and gas output comes from the region. At the same time, nearly 60% of its liquefied natural gas business is concentrated there.

That exposure explains why disruptions in the region can quickly ripple through the company’s operations. Yet Exxon remains one of the most resilient players in the energy sector.

The company traces its roots back more than 156 years to the original Standard Oil empire, and today it remains one of the largest publicly traded energy companies in the world. Its strategy focuses on low-cost, high-volume production, particularly in the Permian Basin and offshore Guyana – two of the most profitable oil regions globally.

Even as geopolitical tensions grow, Exxon continues to invest heavily in these projects.

In fact, company executives recently said production from the Permian could more than double by the end of the decade.

Exxon stock surges and is still likely to continue

The geopolitical uncertainty and drama have also boosted Exxon’s stock performance. Shares of Exxon Mobil have surged about 37% over the past year. And that has been fueled largely by oil prices climbing above $100 per barrel.

That rally has helped Exxon significantly outperform the broader market in 2026. Year to date, Exxon shares are up about 24%, compared with roughly 0.13% for the S&P 500.

Over the past five years, Exxon has also delivered a remarkable 190% total return. That’s the strength of its energy portfolio that most dont realise.

Still, some analysts now view the stock as fairly valued after its strong run, maintaining a “hold” outlook.

ExxonMobil also raised its 2030 plan

In December 2025, this second-largest dividend payer in the S&P 500 updated its Corporate Plan through 2030, raising its earnings and cash flow outlook.

  • $25B projected earnings growth
  • $35B projected cash flow growth
  • $5B increase vs. prior plan for both metrics
  • 13% average annual earnings growth through 2030
  • $145B surplus cash flow expected over five years at $65 Brent
  • ROCE above 17% by 2030

Exxon also continues to reward investors through dividends

As one of the most reliable income stocks, Exxon has increased its dividend for 43 consecutive years, making it a member of the elite Dividend Aristocrats.

The annual payout has risen from $0.75 per share in 1996 to about $4.12 in 2026, and management expects it to continue growing.

So where does that leave investors? When is the U.S.-Israel war with Iran ending? At least not soon.

And with tensions around the Strait of Hormuz worsening, oil prices could climb even further. And with that, both you and I know this could boost profits for energy giants like Exxon.

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