Exxon Mobil (NYSE: XOM) stock surged to a new all-time high of $159.60 during intraday trading on Monday. This came as the dramatic escalation of military conflict in the Middle East between the U.S., Iran, and Israel sent shockwaves through the global energy markets.
Yesterday’s rally, which saw XOM surpass its previous peak of $151 set just weeks earlier, underscores Exxon’s emerging role as the primary hedge for institutional investors amid the most significant threat to global oil supply in decades.
“Operation Epic Fury” Pumps Global Oil and Gas Prices
The main catalyst behind Exxon’s surge was “Operation Epic Fury” – the U.S.-led military combat operation directed against Iran by President Donald Trump aimed at dismantling key parts of the country’s security and military infrastructure that pose an imminent threat to U.S. forces and allies in the Middle East.
Following the reported death of Iranian Supreme Leader Ali Khamenei, the geopolitical situation deteriorated rapidly. Iran responded to the strikes by targeting U.S. military assets and critical commercial infrastructure across the region, including drone strikes near Dubai International Airport, the Burj Khalifa, the Palm Islands, and missile attacks aimed at Aramco’s massive Ras Tanura refinery in Saudi Arabia. Drone and missile strikes were also reported in Bahrain, Qatar, Kuwait, and Oman.
These events have reignited fears of a total blockade of the Strait of Hormuz – the maritime chokepoint responsible for nearly 20% of the world’s oil supply.
In response to heightened supply risk, Brent Crude futures surged toward $82 per barrel, while West Texas Intermediate (WTI) jumped over 8% to trade above $72. The volatility also extended beyond crude, with QatarEnergy announcing a suspension of several liquefied natural gas (LNG) cargoes due to the insecurity of Gulf shipping lanes, causing European natural gas prices to skyrocket by more than 45% in a single session.
Exxon’s Output Edges Toward 40-Year Highs
However, Exxon’s record-breaking performance is not the product of rising oil prices; instead, it reflects a strategic shift by the company toward production in the Western Hemisphere. While Middle Eastern producers face immediate export threats, Exxon’s output is closing in on 40-year highs of approximately 4.7 million barrels per day.
This growth is largely driven by the company’s aggressive expansion in the Permian Basin, bolstered by acqusition of Pioneer Natural Resources in an all-stock merger valued at around $64.5 billion in October 2023, and its high-margin offshore drilling developments in Guyana. These developments allow Exxon to capture the global oil price premium without facing the immediate shipping risk associated with the Persian Gulf.
Market analysts have been quick to notice the developments and adjust their outlooks. During the Morgan Stanley Energy & Power Conference held on March 2-3 in New York City, several firms noted that Exxon’s business model, which spans from exploration to refining and chemicals, allows it to maintain dominant margins even as input costs rise for competitors.
As of March 2026, Exxon Mobil’s year-to-date return stands at an impressive 27.5%, vastly outperforming the broader S&P 500, which has already dipped into the “risk-off” territory. XOM has essentially become a definitive haven for investors sheltering from the U.S.-Iran conflict-led market volatility.
Exxon Mobil (XOM) closed Monday’s trading session at $154.19 – up 1.11% for the day.
