Big Oil Booms as Global Conflict Drives Record Profits
The ongoing conflict in the Middle East has led to soaring profits for major international oil companies. The surprise attack by the United States and Israel on Iran sparked a blockade of the Strait of Hormuz, which pushed oil prices higher. Brent crude is up over 65% this year, topping $100 a barrel.
ExxonMobil tripled its profits in the first quarter, earning half of what it made in all of 2025. Chevron quintupled its gains compared to last year's second quarter. The companies are benefiting from record-high refining margins, exceeding $30 a barrel.
The lack of global refining capacity and the resilience of oil demand have contributed to this windfall for Big Oil. However, experts warn that refined product prices may decouple from crude oil prices in the future, leading to higher gasoline costs and potential inflationary pressures.