12:38 PM EDT, 04/09/2026 (MT Newswires) -- Chevron ( CVX ) expects higher commodity prices driven by the Middle East conflict to boost first-quarter earnings in its upstream segment by up to $2.2 billion, though timing impacts could weigh on the oil giant's bottom line.

Elevated oil prices are projected to benefit upstream segment earnings by $1.6 billion to $2.2 billion in the March quarter, compared with the previous three-month period, the company said in a regulatory filing Thursday.

Crude prices resumed their upward trend Thursday amid uncertainty over the two-week ceasefire deal between the US and Iran announced Tuesday. The war started at the end of February, sending energy prices soaring amid the closure of the crucial Strait of Hormuz.

West Texas Intermediate crude oil was 4.5% higher intraday at $98.67 a barrel, while Brent increased 1.7% to $96.37, well above pre-war levels.

Chevron ( CVX ) said that timing effects linked to hedging and accounting in a rising commodity price environment are "generally negative," potentially impacting first-quarter earnings and cash flow from operations, excluding working capital, by roughly $2.7 billion to $3.7 billion.

"The majority of these effects are in the downstream segment and are expected to unwind in future periods," the company said in the filing.

Chevron ( CVX ) shares were down 1.2% intraday, reducing its year-to-date gain to about 26%.

The company expects downstream earnings to include a charge of about $350 million to $400 million tied to a litigation reserve related to ceased operations, according to the filing.

First-quarter upstream oil-equivalent production is forecast to be in a range of 3.8 million barrels per day to 3.9 million barrels, mainly reflecting downtime at Kazakhstan's Tengizchevroil project and reduced production in the Middle East, Chevron ( CVX ) said.

The company expects to report first-quarter results by May 1.

On Wednesday, larger rival Exxon Mobil ( XOM ) flagged that production disruptions caused by the Middle East conflict could lower its global oil-equivalent output by roughly 6% on a sequential basis in the first quarter. The company also said it expected the surge in energy prices to boost upstream earnings.

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