Iran Conflict Fuels Oil Price Surge, Boosting Profits for Major Energy Companies

A six-month-old conflict in Iran has led to a surge in oil prices, benefiting major oil companies like Exxon Mobil and Chevron.

The war has halted most shipping through the Strait of Hormuz, a critical waterway for global oil supplies. As a result, Brent crude prices rose from $70 to over $100 a barrel for much of March, April, and May, peaking at $126.

Exxon Mobil's second-quarter profits doubled to $14.53 billion, while Chevron nearly quadrupled its profits to $12.07 billion. Six European oil companies posted combined first-quarter profits of $22 billion, a 40% increase from last year.

Patrick Galey, fossil fuels lead at Global Witness, criticized the windfall profits, saying 'there are constituencies around the world who are having a very good crisis.' He added that hundreds of millions of people struggle with rolling blackouts and food shortages due to the price hike.