Aramco's $32 Billion Windfall Highlights Middle East Geopolitics' Impact on Oil Majors
Saudi Aramco's second-quarter net profit soared by 44% to $32.69 billion, thanks in large part to the US-Iran conflict and disruptions in the Strait of Hormuz.
The company took advantage of higher oil prices, which jumped sharply as traders priced in the possibility of severe supply disruptions.
Aramco's East-West Pipeline played a crucial role, allowing it to transport crude across Saudi Arabia to the Red Sea port of Yanbu while maintaining much of its export capability.
The American oil majors also benefited from the spike in oil prices, with Chevron reporting the largest quarterly profit in its history at $12.1 billion and ExxonMobil earning $14.5 billion.
Shell generated $10.8 billion in profits, marking one of the strongest earnings periods for major Western oil companies since Russia's invasion of Ukraine in 2022.