Oil Companies Reap Record Profits from Strait of Hormuz Conflict
Oil companies are reporting record profits due to a combination of factors, including the conflict in the Middle East and the impact on global oil supplies. The war between the US and Israel against Iran pushed Brent crude oil prices from $70 to over $126 in February, leading to massive profits for the world's largest oil producers.
The eight largest oil producers reported a combined net profit of $93 billion in the second quarter of 2026, exceeding even the record-breaking quarters of 2022. However, this time around, the reasons behind the profits are different. While high prices played a role, it was not the only factor.
Saudi Aramco reported the highest profit for the second quarter of 2026 at approximately $32 billion, but its growth rate was weak due to disruptions in the Strait of Hormuz and attacks on its facilities. In contrast, companies geographically farthest from the conflict reported the largest profits, with Chevron nearly quadrupling its second-quarter 2026 profit and ExxonMobil doubling its profit.
The reasons for these profits are twofold: high prices and a shift in supply and demand due to the conflict. Asian and European buyers unable to access Middle Eastern oil turned to other sources, resulting in producers located far from the Gulf selling at higher prices and greater volumes.