Big Oil's Record Profits Soar Amid Iran Conflict

The oil industry's big six companies have posted their strongest quarterly profits since the invasion of Ukraine. The combined net income of Chevron, ExxonMobil, BP, Shell, TotalEnergies, and Saudi Aramco reached $79.4 billion in the second quarter. Brent crude averaged around $104 a barrel, up over 50% year-over-year, due to the Iran war disrupting flows through the Strait of Hormuz.

Western majors such as Chevron and ExxonMobil benefited from higher oil prices with minimal operational impact, capturing wider margins on largely uninterrupted production. In contrast, Saudi Aramco, hit closest to home by the conflict, saw its profits rise but with weaker growth due to rerouting affected export routes and cutting hydrocarbon output by 25%.

ExxonMobil reported the largest dollar profit among the majors, more than doubling to $14.5 billion. Chevron delivered the sharpest earnings rebound, with net income soaring 385%, thanks to record US output and the integration of its $53 billion Hess acquisition. BP's net income rose 141% to $3.91 billion.

US President Donald Trump criticized ExxonMobil and Chevron for benefiting from a supply shortage created by the conflict, calling on them to 'give some of that back to the public' and cut retail prices. Similar accusations were previously leveled at oil majors by US President Joe Biden in 2022.