From 24/7 Wall St. · Omor Ibne Ehsan · · 1m 40s
Hormuz Closure and Exxon Stock
Hormuz strait closure pushes Exxon stock down despite oil prices rising.
In brief
Hormuz strait closure pushes Exxon stock down despite oil prices rising. Exxon's stock fell 6.27% as Hormuz strait closure risks supply disruptions but oil prices rose to $107.02. Originally reported by 24/7 Wall St..
Hormuz Strait Status
Commodity vessel traffic through the Strait of Hormuz is running well below the recent ten-day average.
Exxon Stock Performance
Exxon Mobil settled at $158.69 on September 22, 2026, up 0.25% for the day.
Geopolitical Premium
Exxon has run +34.51% year to date and +45.75% over the past year, so the geopolitical premium was partly built and, in the last week, partly given back, with the stock down 6.27%.
Transit Collapse
Transits collapsed to their lowest tally since early May, far under the recent ten-day average and a small fraction of the prewar baseline for large commercial vessels.
Oil Price Impact
WTI is already at $107.02, up 27.4% from a month ago, and pump gasoline is at $4.48 per gallon, near the series high.
Iran-US Meeting
Iran’s foreign minister met the United States envoy at the UN, setting conditions for reopening that include ending the naval blockade and releasing frozen funds. No agreement was announced.
Supply Offsets
Two supply offsets are in play: progress on the Saudi pipeline that bypasses the strait, and a weekly industry inventory report showing a build where consensus expected a 500,000-barrel draw.
Exxon Earnings
In Q2 2026, the company posted $14.5 billion in earnings and $23.6 billion of operating cash flow, even after losing roughly 10% of upstream production tied to the region.
The main idea
Exxon's stock fell 6.27% as Hormuz strait closure risks supply disruptions but oil prices rose to $107.02.
