Exxon Mobil's first-quarter earnings report revealed adjusted earnings of $1.16 per share, beating the analyst consensus of $1.00. However, the company's net income fell sharply to $4.2 billion, marking its lowest level since early 2021. This decline is attributed to global supply chain disruptions stemming from ongoing conflicts in the Middle East, particularly affecting oil transit through the Strait of Hormuz, which typically handles 20% of global oil and gas shipments. Following the earnings announcement, Exxon shares fell by 1.23% to $152.43, although the stock is still up over 24% year-to-date. CEO Darren Woods cautioned that energy prices could continue to rise, emphasizing that the market has yet to fully absorb the impact of current supply disruptions. Exxon's total production for the quarter was 4.59 million barrels of oil equivalent per day (boepd), reflecting a decline from 5 million boepd in the previous quarter, primarily due to the closure of the Strait. If the strait remains closed, production could drop further to between 4.1 million and 4.3 million boepd. Woods also highlighted the challenges posed by damaged liquefied natural gas (LNG) facilities in Qatar, which are expected to remain offline even after the strait reopens.