【Iran Crisis】U.S.-Iran War Escalates! ExxonMobil has scaled back some operations to control inventory and is urgently evacuating employees from the Middle East

As the US and Israel’s conflict with Iran continues to escalate, ExxonMobil, the world’s largest oil company, CEO Darren Woods said in an interview with Reuters that due to the severe challenges faced by shipping through the Strait of Hormuz, the company has scaled back some operations to precisely control inventory.

The Strait of Hormuz is the world’s most important oil and natural gas transportation route, connecting the Persian Gulf with the Indian Ocean. It handles about one-fifth of global oil consumption daily and exports large amounts of liquefied natural gas. Iran’s threats to attack ships passing through the strait have led to a surge in energy transportation risks.

Urgent evacuation of Middle Eastern staff

ExxonMobil holds minority stakes in oil projects in the UAE, Qatar, and Saudi Arabia. Darren Woods stated that the company has begun evacuating non-essential staff from the Middle East, “Our top priority is to ensure the safety of our employees, so we have decided to evacuate support personnel who are not essential to core operations.” This move reflects the high alert of the world’s leading energy companies regarding the security situation in the Middle East.

The potential longer duration of the Hormuz Strait blockade

ExxonMobil Chief Economist Tyler Goodspeed told CNBC on Sunday that the blockade of the Strait of Hormuz could last longer and be more severe than market expectations, and he believes the market has not fully reflected the seriousness of the situation. He also warned that historically, energy supply crises often act as catalysts for economic recessions. The risk of energy supply disruptions could not only lead to rising oil prices but also threaten global economic stability.

Geopolitical tensions further escalate. U.S. President Donald Trump issued a strong warning on Monday that if Iran attempts to block Middle Eastern oil transportation routes, the U.S. will not rule out further military escalation, but also stated that the US-Israel-Iran war “will end very soon.”

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