ExxonMobil's quarterly profit decreased by $6.5 billion due to the Iran conflict.

US oil industry giant ExxonMobil said on the 8th that its profits in the first quarter of this year may decrease by $6.5 billion due to the impact of the Iran conflict, with most of it being attributed to the accounting treatment of hedging contracts. Hedging is intended to hedge price fluctuations by conducting transactions opposite to the spot market on the futures market. Traders buy or sell physical goods while conducting opposite operations on the futures market. ExxonMobil stated in a declaration on the 8th that profit losses of approximately $3.5 billion to $4.9 billion in the first quarter of this year were due to the soaring oil and gas prices caused by the Iran conflict, as well as the accounting treatment of financial derivatives used to hedge prices when transporting products. In addition to losses from hedging contracts, ExxonMobil also suffered profit losses of $400 million to $800 million due to disruptions in production and refining capacity, and trading losses of $600 million to $800 million due to failure to deliver physical goods hedged by financial derivatives.