Phillips 66 Faces $900 Million Loss as Iran Crisis Lifts Oil Prices

U.S. refiner says its first-quarter results were hit by a sharp increase in commodity prices.

Apr. 7, 2026 at 12:20am

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A minimalist studio still life photograph featuring a stack of financial documents, a calculator, and a pen arranged on a clean, monochromatic background, conceptually representing the abstract corporate strategy and financial impacts of the oil price crisis.The financial fallout from the Iran crisis exposes the energy industry's vulnerability to global oil price volatility.Houston Today

U.S. refiner Phillips 66 said its first-quarter results were hit by a sharp increase in commodity prices, leaving it with nearly $900 million in pre-tax mark-to-market losses. The losses were mainly due to its net short position in derivatives contracts related to crude oil, refined petroleum products, natural gas liquids and renewables feedstocks.

Why it matters

The U.S.-Israeli war on Iran has roiled global energy markets, sending crude prices soaring and impacting major U.S. refiners like Phillips 66. The company's significant losses highlight the volatility and risks faced by the energy industry during geopolitical crises that disrupt global oil and gas supplies.

The details

Phillips 66's net short position in derivatives contracts related to crude oil and petroleum products was approximately 50 million barrels as of the end of March. The losses were distributed across business segments, with the refining segment expected to see an impact of $350 million to $450 million, the marketing and specialties segment expected to see a $300 million to $400 million hit, and the renewable fuels segment potentially seeing $100 million to $200 million in losses.

  • The U.S.-Israeli war on Iran began in late February 2026.
  • Brent futures hit a record monthly increase of 64% in March 2026.
  • U.S. benchmark West Texas Intermediate gained around 52% in March 2026, its biggest jump since May 2020.

The players

Phillips 66

A U.S. refiner based in Houston, Texas.

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What’s next

Phillips 66 is set to report its first-quarter earnings later this month, which will provide more details on the full financial impact of the oil price surge.

The takeaway

The significant losses faced by Phillips 66 due to the Iran crisis and resulting oil price volatility underscore the challenges and risks faced by the energy industry during geopolitical disruptions to global oil and gas supplies. This event highlights the need for energy companies to carefully manage their hedging and derivatives positions to mitigate such market risks.