Middle East War Drives Oil Prices Up, Economic Impact Looms
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 12 2026
0mins
Source: Fool
- Oil Price Surge: The ongoing conflict in the Middle East has caused Brent crude prices to spike to $120 per barrel over the weekend of March 7-8, a staggering 69% increase from $71 before the conflict, although it has since settled around $86, indicating significant economic implications.
- Gasoline Price Increase: The national average price for regular gasoline in the U.S. has reached $3.54 per gallon, up $0.62 from a month ago, representing a 21% rise, which poses a substantial economic burden, particularly for lower-income households.
- Impact on Consumer Spending: Rising gasoline prices act as a hidden tax on consumers, with the cost to fill a Ford F-150's tank increasing by over $22, which is likely to reduce spending on other goods and services, negatively impacting the broader economy.
- Inflationary Pressures: Higher fuel prices not only directly increase gasoline expenses but also raise transportation costs for food and other goods, leading to decreased consumer confidence and spending, which exacerbates inflationary pressures in the economy.
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Analyst Views on XOM
Wall Street analysts forecast XOM stock price to fall
19 Analyst Rating
12 Buy
7 Hold
0 Sell
Moderate Buy
Current: 154.330
Low
114.00
Averages
132.17
High
158.00
Current: 154.330
Low
114.00
Averages
132.17
High
158.00
About XOM
Exxon Mobil Corporation is an energy provider and chemical manufacturer. The Company’s principal business involves exploration for, and production of, crude oil and natural gas; the manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products; and pursuit of lower-emission and other new business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima systems, carbon materials, and lithium. Its Upstream segment explores for and produces crude oil and natural gas. The Energy Products, Chemical Products, and Specialty Products segments manufacture and sell petroleum products and petrochemicals. Energy Products segment includes fuels, aromatics, and catalysts and licensing. Chemical Products segment consists of olefins, polyolefins, and intermediates. Specialty Products segment includes finished lubricants, basestocks and waxes, synthetics, and elastomers and resins.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Segment Performance: Upstream earnings rose to $6.26 billion from $4.43 billion in Q4, despite being partially offset by Middle East impacts and operational disruptions, while Chemical Products swung to a profit of $110 million from a loss in Q4, showcasing the company's resilience and adaptability across various business segments.
See More
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- Revenue Situation: Despite the earnings beat, the company's revenue of $85.14 billion fell short of expectations by $150 million, reflecting sales pressure amid global economic uncertainties.
- Market Reaction: Following the earnings report, market volatility for Exxon Mobil increased, with investors divided on future performance expectations, potentially impacting short-term investment decisions.
- Industry Outlook: Amid geopolitical risks in the Middle East, both Exxon Mobil and Chevron are expected to see double-digit declines in Q1 profits, highlighting the challenges and uncertainties facing the industry as a whole.
See More
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- Revenue Growth: Despite the decline in net income, total revenues and other income reached $85.14 billion, up from $83.13 billion last year, demonstrating resilience in sales and operating revenue.
- Strategic Execution Impact: CEO Darren Woods noted that the strategic execution since 2018 has significantly optimized operations and reduced structural costs, establishing a solid foundation for future earnings and cash flow growth.
See More
