In the first quarter of 2023, Exxon Mobil and Chevron reported declines in profits, with Exxon earning $4.18 billion compared to $7.7 billion a year prior, and Chevron reporting $2.21 billion down from $3.5 billion. These declines were attributed to financial hedges that failed following attacks on Iran, which led to the near closure of the Strait of Hormuz, a critical passage for global oil transport. Despite these challenges, both companies surpassed Wall Street expectations, with Exxon earning $1.16 per share and Chevron reporting $1.41 per share in adjusted profits. The surge in gasoline prices, which hit an average of $4.39 per gallon, has significantly impacted American households and businesses, contributing to rising inflation and economic strain. The situation has led to disruptions in various sectors, including airlines, which are facing increased fuel costs and have begun to cancel flights due to supply issues.