Exxon Mobil NYSE:XOM, a major U.S. oil and natural-gas producer, rose approximately 3.3% in Wednesday's regular-session trading as of 11:18 a.m. ET as renewed Middle East airstrikes drove oil prices nearly 7% higher. Brent crude advanced $5.70, or 6.8%, to $89.79 per barrel. West Texas Intermediate increased $4.94, or 6.2%, to $84.20.
The United States and Saudi Arabia launched strikes against Iran-backed groups in Iraq after drone attacks targeted Saudi oil facilities. Iran said it had fired at ships in the Strait of Hormuz and at U.S. military bases in Jordan. President Donald Trump subsequently promised retaliatory action, while Tehran rejected an Omani proposal for joint regional management of the Strait of Hormuz. Tanker traffic through the strategically important shipping route remained limited.
Higher crude prices could increase the revenue generated by Exxon's upstream oil production, although the eventual earnings effect will depend on production volumes and how long elevated prices persist. U.S. crude inventories declined by approximately 3.3 million barrels during the week ended July 24, according to market sources citing American Petroleum Institute data. OPEC+ is also expected to pause scheduled production increases for three months beginning in October, Reuters reported. Investors may continue assessing whether escalating military activity sustains the oil-price increase or whether another diplomatic pause reverses Wednesday's gains.