Iran-US Conflict Drives Oil Prices Higher, Boosts Major Oil Companies' Profits

Major oil companies have seen massive profits due to higher energy prices caused by the ongoing conflict between the US and Iran. The Strait of Hormuz, a critical waterway for oil shipments, has been largely halted since the conflict began six months ago.

The halt in shipping led to a surge in oil prices from $70 per barrel to over $100 per barrel in March, April, and May, reaching as high as $126 at one point. This increase in price resulted in higher profits for major oil companies such as Exxon Mobil and Chevron.

Exxon Mobil reported doubling its second-quarter profits to $14.53 billion, up 105% from the same time last year, while Chevron nearly quadrupled its profits to $12.07 billion, up 385% from the same quarter last year.

Analysts expect these companies to continue benefiting from higher prices due to their control of refineries and ability to sell oil at a premium. However, not all oil and gas companies are benefitting equally; those in the Middle East that rely on liquefied natural gas exports have seen revenues plummet.