Oil Giants Cash In as Global Energy Prices Soar Amid Iran-US Conflict
Major oil companies are raking in massive profits as global energy prices soar due to the ongoing conflict between Iran and the US.
The fighting has halted most shipping through the Strait of Hormuz, a critical waterway that accounts for nearly a fifth of the world's oil and natural gas exports. As a result, Brent crude prices have skyrocketed from around $70 per barrel to over $100 per barrel in March, April, and May.
Exxon Mobil reported its second-quarter profits doubled to $14.53 billion, boosted by record diesel production. Chevron nearly quadrupled its profits to $12.07 billion and revenue jumped 56% to $70.06 billion. Six of Europe's largest oil companies posted combined first-quarter profits of $22 billion, more than 40% higher than last year.
Lawmakers are proposing a windfall tax on major oil producers for their war-related profits, with the proceeds redistributed to consumers. The average price for a gallon of regular gasoline in the US reached $4.11 Friday, about $1 more than last year at this time.