Following recent military exchanges between the US, Israel, and Iran, US oil and gas companies with Middle Eastern operations are largely adopting a cautious, wait-and-see approach regarding their personnel and assets.

Company Responses and Operational Status

Chevron confirmed it halted production at the Leviathan gas field off Israel's coast on Monday following an order from Israel’s Ministry of Energy and Infrastructure. The company stated its workers and facilities were safe and emphasized that safety is its top priority. Other major companies provided limited commentary. ExxonMobil and ConocoPhillips declined to comment on their operations in countries like Saudi Arabia, Qatar, the UAE, and Libya. Occidental Petroleum, active in Oman and the UAE, stated it is monitoring the situation and ensuring personnel safety, with operations currently running efficiently. Driller H&P also reported monitoring events with no initial impact on its Saudi Arabian assets. Major oilfield services contractors, including SLB, Halliburton, and Baker Hughes, did not respond to requests for comment.

Market Impact and Price Volatility

The conflict triggered immediate volatility in energy markets. Oil and gas prices surged when trading reopened; Brent crude futures rose approximately 7.7% and West Texas Intermediate futures rose 6.7%. A significant development was Qatar's suspension of liquefied natural gas production, an action expected to disrupt global gas markets. Analysts warn that oil prices could reach $100 per barrel if disruptions continue in the Strait of Hormuz, a critical chokepoint for roughly 15% of global oil and 20% of global LNG supplies.

Analyst Perspectives on Supply Risks

Analysts note the current military action is more intense and widespread than previous Iran-Israel exchanges in 2024 and 2025, raising the risk of supply disruptions due to Iranian retaliation against other oil-producing nations. However, historical precedent suggests oil prices often cool once a conflict subsides and the associated risk premium fades. While Iran's crude exports of about 1.4 million barrels per day represent a relatively small portion of global supply, the larger market risk is if tankers begin avoiding the Persian Gulf entirely—a trend some analysts see early signs of. They also express skepticism that Iran would attempt a full blockade of the Strait of Hormuz, as this would sever its own critical export revenue.

Oilfield Services Exposure and Sanctions Context

Analyst group TD Cowen highlighted that no western oilfield services companies operate in Iran due to sanctions. However, firms like SLB, Halliburton, and Baker Hughes have significant revenue exposure elsewhere in the region. The report suggests conflict fallout could disrupt their operations, though increased activity might be needed to offset any lost Iranian volumes. The analysts note that western service companies could potentially return to Iran following a regime change but would likely be very risk-averse based on prior experience in markets like Iraq.