Iran War Windfall: Oil Companies Pocket Billions Amid Soaring Gas Prices

Oil companies are raking in billions of dollars in profits due to the ongoing war in Iran, but they're reluctant to reinvest those funds into expanded drilling that could help increase global fuel supplies.

According to a report by Wood MacKenzie, the industry is likely to reap a $425 billion annual windfall if oil prices average $90 per barrel for the year. The current price of crude oil is around $90, and it has soared as high as $120 since the US and Israel attacked Iran in late February.

ExxonMobil and Chevron, two of the largest oil companies in the world, reported combined profits of $26.5 billion for the second quarter of this year. Exxon's CEO Darren Woods attributed the company's success to 'disciplined investment and strong execution.'

However, the massive earnings are being met with criticism from lawmakers who are eager to assign blame for high gas prices. Democrats in Congress have proposed a windfall profit tax on US oil companies until the war with Iran is over and oil prices drop below $75 per barrel.