Oil Companies Cash In on Soaring Gas Prices

Oil companies Chevron and ExxonMobil are raking in massive profits despite soaring gas prices. The two companies reported combined profits of over $26 billion for the second quarter, with Chevron's earnings more than five times higher than last year and ExxonMobil's nearly doubling.

The increasing costs at the pump have allowed oil producers to sell their products at higher prices, contributing to the surge in profits. According to the American Automobile Association (AAA), the national average for a gallon of regular gas is $1 more than it was this time last year, with diesel fuel prices up by $1.61 over the same period.

The Strait of Hormuz, a vital waterway that transports about one-fifth of the world's oil and natural gas, has been disrupted since the beginning of the war in Iran. Although the US does not rely heavily on oil from this region, any drop in global supply causes prices to rise everywhere.