Weatherford International Plc., a global leader in oilfield services, announced on Wednesday, April 22, 2026, that the financial consequences of the ongoing conflict in the Middle East are expected to intensify during the second quarter. Chief Executive Officer Girish Saligram informed analysts during a conference call that the company projects a total reduction in profits of between $30 million and $50 million for the first half of the year. This estimate is predicated on the expectation that oilfield operations in the affected regions will begin to normalize toward the end of the current quarter.
The disclosure comes one day after Weatherford reported its first-quarter financial results on Tuesday, April 21, which showed that earnings per share surpassed analyst expectations. However, the company cautioned that these results do not fully reflect the escalating disruptions caused by the war involving Iran. Saligram noted that the second quarter would bear the brunt of the impact as global energy shipments continue to face significant logistical hurdles and security risks. The conflict has effectively restricted the movement of oil and natural gas through the Persian Gulf, creating a challenging environment for service providers that have increasingly relied on the Middle East for revenue growth.
Operational challenges have led to the temporary suspension of Weatherford’s activities in several key markets. Saligram confirmed that the company has been forced to pause operations for multiple weeks in Iraq, Qatar, and specific regions of Kuwait. Beyond the direct cessation of work, the company is also contending with a sharp rise in operational overhead. Increased expenditures for freight, jet fuel, and trucking have placed additional strain on the company’s margins. These inflationary pressures are directly linked to the broader regional instability and the necessity of rerouting supply chains to avoid conflict zones.
Weatherford’s outlook mirrors recent statements from other major industry participants. Earlier this week, Halliburton Co. provided similar guidance, warning of a substantial impact on its second-quarter earnings as a result of halted operations and regional volatility. The Middle East has historically served as a cornerstone for Weatherford’s international expansion strategy, making the current regional volatility particularly impactful. Despite the immediate headwinds, Weatherford’s management maintained that a rebound in Middle Eastern activity is possible in the second half of 2026. This recovery is contingent upon the stabilization of the geopolitical environment and the restoration of standard shipping routes in the Persian Gulf.