Iran-US Conflict Drives Energy Prices Higher, Fueling Profits for Oil Giants

The ongoing conflict between the US and Iran has led to a significant increase in energy prices worldwide. As a result, American oil and gas giants such as Exxon Mobil and Chevron have reaped massive profits, with their second-quarter earnings more than doubling compared to the same period last year.

Exxon Mobil reported $14.53 billion in profits, up 105% from the previous year, while Chevron nearly quadrupled its profits to $12.07 billion, a 385% increase. The companies' revenue also soared, with Exxon Mobil bringing in $116.02 billion and Chevron generating $70.06 billion.

The conflict has disrupted petroleum shipments through the Strait of Hormuz, a narrow waterway that accounts for a fifth of global oil exports. This has led to a shortage of crude oil and higher prices for Brent crude, which soared from around $70 to above $100 a barrel in March, April, and May.

Experts point out that refineries are also benefiting from the high prices, with 'crack spreads' - the profit margins earned by refiners - skyrocketing. This is because refineries have ample oil supplies and can produce higher-priced products such as jet fuel and diesel.