Exxon Mobil and Chevron reported lower first-quarter profits despite surging global oil prices driven by disruptions from the Iran war.

Exxon’s earnings fell about 46% year-over-year and Chevron’s about 37%, though both companies still beat Wall Street expectations.

The declines were largely attributed to timing issues and delayed oil shipments in the Middle East, which postponed revenue recognition.

Despite the short-term drop, both firms are expected to benefit later from sustained high oil prices, The Guardian has reported.

The broader energy market remains volatile, with some companies gaining from trading gains while others face production and export disruptions.