New York, Feb 23, 2026, 19:10 (EST) — After-hours
- Chevron shares ended Monday up 0.5%, holding steady in after-hours trading.
- Chevron landed a one-year window for exclusive negotiations with Iraq on the West Qurna 2 oilfield.
- Oil hovered close to its highest level in six months, with traders eyeing the ongoing U.S.-Iran negotiations and lingering concerns over tariffs.
Chevron (CVX) held steady in after-hours trading Monday following news that it had entered exclusive negotiations with Iraq concerning the massive West Qurna 2 oilfield. The stock finished the session up 0.53% at $184.91. 1
This headline hits on a key point: access to a scarce, long-lived asset—plus, sanctions are shaping who gets to manage major production in Iraq. Investors are seeing a clear signal here: “politics” have reentered the oil equation, following a stretch where prices mostly tracked supply increases and demand figures.
The timing isn’t great for markets. Oil prices have bounced back near a six-month peak, and that usually drags the major integrated players higher—even if there’s not much fresh news about the stocks themselves and the broader market action is jittery.
Chevron gets a year of exclusive talks under the agreement framework, with confidential data sharing also laid out in the statements. West Qurna 2 ranks among the world’s biggest oilfields, making up roughly 0.5% of global oil supply and close to 10% of Iraq’s production. Iraq took control of the site last month after U.S. sanctions targeted Russia’s Lukoil, which previously operated the field.
Traders are digging into the details. The agreements still require a sign-off from Iraq’s Council of Ministers, and several steps depend on green lights from elsewhere, notably the U.S. Treasury’s Office of Foreign Assets Control, which handles sanctions enforcement. Chevron, for its part, is emphasizing the need for “competitive economic terms.”
Oil slipped on Monday, though prices remained high. Brent finished the session at $71.49 a barrel. U.S. West Texas Intermediate closed out at $66.31. Traders kept a close watch on the upcoming third round of U.S.-Iran nuclear talks set for Thursday and lingering questions over U.S. tariffs. “Tariffs are going to be a disaster for the near future,” warned Bob Yawger, director of energy futures at Mizuho. 2
Chevron’s international profile would get another boost with a major Iraqi project, coming on the heels of a run of deals—most notably, its $53 billion Hess acquisition set for 2025. The math is clear: greater scale, longer runway. But there’s a catch. More of Chevron’s future would be tied up in Baghdad’s political scene and whatever stance Washington takes on sanctions.
Goldman Sachs has bumped up its oil price targets for late 2026, citing slimmer OECD stocks. Still, the bank is calling for a surplus that year and flagged potential price drops if sanctions on Iran or Russia relax and extra barrels arrive. 3
Still, these Iraq negotiations remain only discussions for now. Should approvals stall or project returns fall short of Chevron’s required hurdle, investors may be left with headlines but no production to show for it. And if crude prices retreat from their recent climb, sector support could start to look shaky.
Chevron heads into its next session with two main catalysts: fresh headlines from Baghdad and whatever direction oil prices take if geopolitics reshuffle. A sharp drop in crude prices would likely outweigh any fresh “exclusive” talk.
Iraq’s cabinet still needs to approve the deal, while Lukoil is staring down a Feb. 28 cutoff to offload its assets. Traders are eyeing Thursday’s U.S.-Iran negotiations in Geneva, looking for signals on possible shifts in sanctions risk.
