ExxonMobil (XOM) Stock Surges as Brent Crude Breaks $90 Amid Iran Conflict

Key Highlights

• Brent crude surged more than 2% beyond $90 per barrel following August 31 US military action against Iranian rocket installations in the Strait of Hormuz
• ExxonMobil shares started trading at $156.88, compared to a consensus analyst target of $166.10
• Second quarter 2026 earnings per share reached $3.52, more than doubling the $1.64 reported last year, though falling short of the $3.56 Street estimate
• TD Cowen upgraded its XOM price objective to $168 with a Buy recommendation on August 7
• The company announced a $1.03 quarterly dividend per share, representing a 2.6% annual yield, with payment scheduled for September 10

Shares of ExxonMobil (XOM) began trading at $156.88 on August 31, 2026, as energy markets responded to escalating tensions in the Persian Gulf, with Brent crude climbing back above the $90 threshold after US forces struck Iranian military targets near the Strait of Hormuz.

Exxon Mobil Corporation, XOM

Oil benchmarks surged over 2% during morning trading sessions after Washington confirmed military operations against Iranian installations, prompting retaliatory measures from Tehran against American military facilities. The Strait of Hormuz serves as a critical chokepoint for global oil shipments, and any instability in this region typically triggers immediate reactions across energy equities.

This geopolitical escalation compounds what has already been a turbulent period for the energy giant. ExxonMobil’s operations at Upper Zakum in the Gulf region, where the company maintains a 28% ownership interest, experienced production constraints from March through May 2026 due to compromised export channels.

Second Quarter 2026 Results: Revenue Exceeds, Earnings Fall Short

ExxonMobil posted second quarter 2026 earnings of $3.52 per share, coming in $0.04 below the Wall Street consensus of $3.56. However, the company’s quarterly revenue of $114.53 billion surpassed analyst projections of $109.94 billion.

From a year-over-year perspective, the earnings trajectory shows remarkable strength. The company’s Q2 2025 EPS of $1.64 means profitability per share has increased by more than 114% over the twelve-month period.

Looking ahead to the upcoming earnings announcement, Wall Street analysts are projecting EPS of $3.60, indicating expectations for continued solid operational performance.

ExxonMobil reported an 8.88% net margin and a 13.14% return on equity during the quarter.

Wall Street Targets and Shareholder Returns

On August 7, TD Cowen increased its price objective for XOM from $155 to $168, maintaining its Buy recommendation. Royal Bank of Canada maintains a $180 target alongside a Sector Perform rating. Conversely, Bank of America shifted its stance in late July, moving from Buy to Neutral while simultaneously raising its target to $158.

The prevailing analyst consensus sits at Hold, with the mean price target landing at $166.10. This suggests approximately $9 of upside potential from the current opening price level.

Regarding shareholder returns, ExxonMobil announced a quarterly distribution of $1.03 per share, translating to $4.12 on an annualized basis and yielding 2.6%. Shareholders of record as of August 17 will receive payment on September 10.

The company maintains a debt-to-equity ratio of 0.12, with shares trading between a 52-week range of $108.35 and $176.41. The company’s market capitalization currently stands at $650.26 billion.

Van ECK Associates significantly reduced its XOM holdings by 95.4% during the second quarter, divesting 3.79 million shares while maintaining 183,518 shares worth approximately $25.09 million. Institutional ownership of XOM currently represents 61.8% of outstanding shares.

For the full fiscal year, analysts are projecting ExxonMobil will deliver earnings per share of $11.86.

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