Oil Giants Cash In Amid Iran Conflict
Big oil companies are raking in massive profits despite rising tensions in the Middle East. According to recent reports, six of Europe's largest oil companies posted combined first-quarter profits of $22 billion, a staggering 40% increase from last year. BP, for instance, saw its profits more than double to $3.9 billion in the second quarter.
Saudi Aramco reported a 44% year-on-year increase in second-quarter net profit that reached $32.69 billion, driven by higher crude oil and refined products prices. The supercharged performances from big oil follow reports of enormous profits from U.S. oil drillers last week.
The conflict between the U.S. and Iran has disrupted energy markets, sending oil and gasoline prices sharply higher. As a result, consumers in the West are paying more for gas, jet fuel, and diesel, while countries in Asia rely heavily on fuel exports through the Strait of Hormuz, where supplies have run low, leading to rationing and closures.
Despite falling oil prices on Tuesday, big U.S. energy companies drew criticism from President Donald Trump, who expressed discontent with Chevron and Exxon Mobil's outsized profits. Trump criticized them for not reducing retail prices, saying 'They made too much money, too much money.'