Analysts say that the Iran war could threaten Exxon TotalEnergies' production

Analysts said that Exxon Mobil and TotalEnergies are the three companies most exposed to disruptions of oil and gas production due to the U.S./Israel war against Iran.

Energy sector has been shook by the U.S.-Israeli'strikes' on Iran on Saturday that killed Iran's Supreme Leader Ayatollah Khamenei. The conflict forced some oil and natural gas fields to close in the area and has effectively stopped shipping through the Strait of Hormuz. This is an important waterway that connects Iran and Oman, through which tankers transporting crude oil, fuel, and liquefied gas are transported on their way from Middle Eastern producers and refiners.

Jefferies analysts estimate that 29% of TotalEnergies, a French oil company, is produced in the Middle East. Exxon produces 20% of its oil and gas and Shell 20%. While the war is threatening some?production it has also caused a?surge in oil and natural gas prices which could help boost the profits of the companies. Brent crude futures rose about 7% to $77.74 a barrel on Monday, while European natural gas benchmark surged about 40%.

Exxon's portfolio of liquefied gas could have the biggest impact. TD Cowen estimates that nearly 60% of Exxon's LNG business is based in the Middle East.

Exxon refused to comment on the operations it has in the region. Shell and TotalEnergies didn't immediately respond to requests for comment. All three companies are partners with QatarEnergy's state-owned firm, QatarEnergy. The company halted LNG production Monday after drone attacks from Iran. About 20% of global LNG is supplied by Qatar.

Betty Jiang is an analyst at Barclays who believes that Exxon's project in Texas, Golden Pass LNG will start production this month.

TotalEnergies, in addition to its LNG stakes, produces oil and natural gas in the UAE. Shell is also a major player in Oman.

(source: Reuters)