Iran Conflict Drives Oil Price Surge, Fueling Profits for Global Giants

A six-month conflict between the United States, Israel, and Iran has led to a global energy supply chain disruption, causing oil prices to surge. The Strait of Hormuz, which handles one-fifth of the world's oil transportation, was blockaded by Iran in response to military strikes launched by the US and Israel at the end of February 2026.

The conflict has resulted in high crude oil prices, with Brent crude briefly reaching $126 per barrel. Despite a brief ceasefire agreement reached by the Trump administration, the situation remains unresolved, leading to continued disruption in the global energy supply chain.

As a result, major oil companies such as ExxonMobil and Chevron have seen significant profits. In the second quarter, ExxonMobil's performance soared, with profits doubling year-on-year to $14.53 billion. Chevron's profitability was even more impressive, with nearly quadrupled year-on-year profits reaching $12.07 billion.

The refining business has become a major winner in this market cycle, with integrated oil companies benefiting from the global refining supply gap. Although some oil companies saw a decline in crude oil processing volume and refined product sales, the significant increase in refined product prices directly drove a surge in profits.