Houston Oil Firms Disrupted as Iran War Escalates

Exxon, Chevron and other major players face production challenges and supply chain disruptions amid the conflict.

Published on Mar. 10, 2026

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The ongoing conflict between the U.S., Israel, and Iran has caused significant disruptions to oil and gas operations owned by major Houston-based energy companies like Exxon Mobil, Chevron, Occidental Petroleum, and ConocoPhillips. Facilities across the Middle East have been impacted by airstrikes and threats of retaliation, leading to evacuations, production shutdowns, and the near-total closure of the Strait of Hormuz, a critical global energy chokepoint.

Why it matters

The disruptions to energy infrastructure and supply chains in the Middle East pose serious challenges for Houston's oil and gas giants, which have substantial assets and operations in the region. While higher global energy prices have boosted profits for some U.S. producers, the majors with significant Middle East exposure are facing a "double-edged sword" of benefits and vulnerabilities.

The details

Exxon has been forced to evacuate non-essential personnel from Qatar, where over 50% of its LNG and 20% of its oil and gas production originates. Chevron has shut down production at its Leviathan gas field in Israel, while ConocoPhillips and Occidental Petroleum have seen their Qatari operations disrupted. European majors like BP, Shell, and TotalEnergies also have substantial assets in the region that have been impacted.

  • On March 4, 2026, Iran's Revolutionary Guards claimed total control of the Strait of Hormuz.
  • On March 7, 2026, Kuwait Petroleum Corporation declared force majeure due to the conflict.
  • Last week, BP evacuated non-Iraqi staff from the Rumaila oil field in Iraq after drone strikes.

The players

Exxon Mobil

A major U.S. oil and gas company with significant operations and assets in Qatar, the United Arab Emirates, and Oman.

Chevron

The second-largest U.S. oil company, with natural gas holdings in Israel and crude production in Saudi Arabia and Kuwait.

ConocoPhillips

A global energy company with more than 30% of its liquefaction capacity tied to a large-scale LNG export site in Qatar.

Occidental Petroleum

A Houston-based independent oil and gas producer with substantial assets throughout the Middle Eastern region, including in Qatar, the UAE, and Oman.

BP

A major European oil and gas company with significant operations in Iraq, where it has evacuated staff from the Rumaila oil field after drone strikes.

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What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

The conflict in the Middle East has created a precarious situation for Houston's oil and gas majors, who must balance the benefits of higher global energy prices with the significant operational and supply chain disruptions impacting their assets in the region. The ability of these companies to navigate these challenges will be critical in the months ahead.