FINWIRES · TerminalLIVE
FINWIRES

Market Chatter: Trump Meets Oil Executives at White House to Discuss Energy Market Impacts of Iran War

By

US President Donald Trump and a number of senior government officials met executives from the oil and gas industry at the White House on Tuesday to discuss the implications of the Iran war, Axios reported on Wednesday.

Chevron (CVX) CEO Mike Wirth was among attendees, a company spokesperson confirmed to Axios.

The discussion covered domestic production, Venezuela's oil sector, the oil futures market, natural gas and shipping, a White House official told Axios, but nothing is known about the conclusions of the talks, if any.

While the US is relatively insulated from the supply shock that has mainly hit Asia since the Feb. 28 of the Iran war, higher gasoline prices in the US, amid growing competition for its hydrocarbons, risk repercussions for the administration.

Axios said average gasoline prices were $4.18 per gallon on Tuesday, citing to the American Automobile Association. That is the highest level since 2022.

With limited scope to lower prices, Axios said prolonged higher prices may result in demand destruction, basically less consumption, in the US, as has already been seen elsewhere.

The White House did not immediately respond to' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Related Articles

Oil & Energy

US Oil Update: Futures Gain as Trump Signals Dissatisfaction With Iran Proposal

Crude oil futures climbed in after-hours trading on Tuesday, buoyed by reports that President Trump is dissatisfied with Iran's latest proposal to end the Middle East conflict and reopen the Strait of Hormuz, as markets weigh the UAE's decision to exit OPEC.Front-month West Texas Intermediate crude futures gained 3.37% to $99.62 per barrel, while Brent futures were up 2.66% to $111.11/bbl.Soojin Kim, research analyst at MUFG, said crude edged higher as markets assessed Iran's latest proposal to revive peace talks, while disruptions in the Hormuz continued to constrain global energy supplies.President Trump reportedly told his advisors that he is not satisfied with Iran's proposal to open the Strait and end the Middle East conflict, which has roiled the global energy market. However, it was not yet clear why Trump is dissatisfied with Iran's offer.The US President said in a social media post on Tuesday that Iran wants the US to lift its blockade of the Hormuz and reopen the strategic waterway as soon as possible.Saxo Bank strategists said that US-Iran peace talks remain at an impasse, with efforts to restart negotiations stalled.Iran, on the other hand, has signaled it may be willing to accept an interim deal to reopen the Strait in exchange for an end to the blockade, according to media reports.The double blockade of the Strait by the US and Iran has ground vessel traffic to near zero, choking off flows of crude, natural gas and oil products.Iran's mission to the UN accused the US of unlawful actions that threaten international navigation, saying that any disruption to vessel traffic in the Hormuz would be the US's responsibility.Kim said Iran has reportedly tied a broader peace deal to the removal of the US naval blockade and guarantees against future attacks, but the US remains skeptical.Meanwhile, the UAE's departure from the OPEC+ alliance is set to have major ripple effects on the global oil market, especially if major producers like Saudi Arabia and Russia also increase output.Rystad Energy strategies said the UAE's departure strips the producer group of one of its core mechanisms of influence, spare capacity that can be deployed to offset disruptions or withdrawn to support prices.However, Sparta Commodities analysts said that though the producer cartel is facing renewed questions over its long-term cohesion after the departure, the immediate impact on global oil balances remains muted.On the supply front, Iran is reportedly running out of storage capacity for its crude, raising the prospect that it may be forced to cut output further. US Treasury Secretary Scott Bessent said in a social media post on Monday that the Iranian oil industry was "starting to shut in production" due to the Hormuz blockade.

Oil & Energy

Chevron Upstream Gains Offset by Timing Impacts; Exxon Hit by Disruptions, RBC Says

Chevron (CVX) and ExxonMobil (XOM) are to post Q1 results this week, with consensus EPS at $1.02 and $0.94, respectively, amid war-driven market volatility, RBC Capital Markets said in a Tuesday note.Chevron could report adjusted EPS of $1.02 per share versus RBC's $0.83 estimate, while cash flow from operations may reach $6.72 billion compared with $6.26 billion forecast, RBC said.The company's upstream segment may gain $1.6 billion to $2.2 billion from stronger commodity prices, while production could range between 3.8 million and 3.9 million barrels of oil equivalent per day, RBC added.Chevron faces negative downstream timing impacts of $2.7 billion to $3.7 billion after tax due to the Middle East conflict, although these effects should reverse over time, the note said.Chevron maintains limited exposure to the Middle East, with regional liquids accounting for just over 1% of output compared with 8% for Exxon and 11% to 19% for European peers, RBC said.RBC expects Chevron may raise its share buyback guidance above the current $10 billion to $20 billion range, with consensus estimating $3.7 billion for Q2 and $13.7 billion for the full year, it said.ExxonMobil could post adjusted EPS of $0.94 per share versus RBC's $1.17 estimate, while cash flow may total $10.62 billion compared with $14.45 billion forecast, RBC said.The company reported negative timing effects of $3.5 billion to $4.9 billion, equivalent to about $0.93 per share at the midpoint, which it expects to reverse over time, the note said.Exxon expects volume disruptions in the Middle East to reduce earnings by $400 million to $800 million, with an additional $600 million to $800 million impact tied to hedged cargoes, RBC added.Upstream production could decline about 6% sequentially, although tax regimes in the Middle East may limit the overall earnings impact, the note said.RBC said Exxon has greater regional exposure, with Qatar LNG accounting for about two-thirds of its global liquefied natural gas portfolio, thereby increasing sensitivity to disruptions.Investors are focusing on damage to Middle East assets, including two LNG trains in Qatar, which may take three to five years to return to full operations, RBC said.Refining margins remain a key uncertainty, with Exxon capturing only $0 to $400 million in uplift, lower than earlier expectations, the note added.RBC set a $220 price target for Chevron based on a 10x 2027 EV/DACF multiple, while Exxon carries a $180 target using an 11x multiple, reflecting relative valuation differences, it said.The firm maintained an Outperform rating on Chevron and a Sector Perform rating on ExxonMobil, citing differing exposure to geopolitical risks and earnings visibility, the note said.Price: $188.18, Change: $+3.40, Percent Change: +1.84%

$CVX$XOM
Oil & Energy

Trump Says Iran Sought Reopening of Strait of Hormuz

US President Donald Trump said Tuesday that Iran had informed the US it was in a "state of collapse" and had requested the reopening of the Strait of Hormuz."Iran has just informed us that they are in a 'state of collapse.' They want us to 'open the Hormuz Strait,' as soon as possible, as they try to figure out their leadership situation," Trump said in a post on Truth Social.The comments come amid a naval standoff in the Strait of Hormuz that has effectively shuttered the strategic waterway, sending global energy markets into a tailspin.Meanwhile, Iran's mission to the United Nations on Monday said that any disruption to shipping in the Persian Gulf and the Hormuz would be the US' responsibility, in a social media post.Iran made the remarks at a UN Security Council meeting on maritime safety, alleging that Washington had engaged in unlawful actions that threaten international navigation."Any disruption to maritime transport in the Persian Gulf and Strait of Hormuz directly and its consequences lie with the US, whose unlawful actions endanger international navigation," it said.The mission said it had the legitimate right over the Strait, "As the main coastal state, Iran has the legitimate and legal rights to take necessary and proportionate measures to address emerging security threats, ensure safe navigation, and prevent the misuse of the Strait of Hormuz for hostile or military purposes," Iran's mission said in a post on X.The mission also alleged that the US maritime blockade violated international law."The US imposition of a maritime blockade, illegal seizure of Iranian vessels, and taking their crews hostage violate international law, the UN charter, and amount to piracy and aggression," the mission said.Iran called on the UN Security Council to ensure accountability and the immediate release of all vessels and crew members.Commercial vessel traffic through the Hormuz remains tightly constrained. The latest data from Kpler show that only six vessel crossings were recorded, up two from the previous day, all moving west to east and evenly split between commercial and non-commercial activity.