Why do SLB and Baker Hughes expect higher oil exploration and production spending, and what role does the Iran war play?

SLB and Baker Hughes expect higher oil exploration and production spending because the U.S.-Israeli war with Iran has disrupted global oil supply—halting 20% of the world’s oil flow through the Strait of Hormuz and shutting in 9 million barrels per day of production—thereby intensifying focus on energy security, supply diversification, and upstream investment, especially in North America and Latin America.

How has the Middle East conflict directly affected SLB’s and Baker Hughes’ recent financial performance?

The conflict caused SLB’s Middle East and Asia revenue to drop 10% to $2.69 billion in Q1, with a projected 6–8 cents per share sequential earnings hit in Q2; Baker Hughes saw its regional revenue fall 19% to $1.15 billion in the quarter—the Middle East being its largest market, contributing over one-third of quarterly revenue.

SLB, Baker Hughes see oil exploration spending rising as Iran war disrupts supply

Apr 24, 2026

SLB and Baker Hughes forecast rising oil exploration spending due to Middle East supply disruptions, despite recent regional revenue declines. Analysts predict substantial demand for infrastructure repairs and strong market growth by 2027-2028 as conflict impacts resolve.

reuters

SLB seeks to pass on costs as Iran war disrupts supply chains

reuters

SLB, Baker Hughes see oil exploration spending rising as Iran war disrupts supply

FAQ