Oil Giants Cash In as US-Iran Fighting Sends Prices Soaring

Major oil companies are reaping massive profits due to higher energy prices caused by US-Iran fighting. The conflict has impeded petroleum shipments through the Strait of Hormuz, a narrow waterway that accounts for a fifth of global oil and natural gas deliveries.

Brent crude prices soared from $70 to above $100 per barrel in March, April, and May, with a peak of $126. This surge has generated huge profits for big oil companies like Exxon Mobil and Chevron. Between April 1 and June 30, Exxon Mobil's profits doubled to $14.53 billion, up 105% from the same period last year.

Chevron nearly quadrupled its profits to $12.07 billion, a 385% increase from the same quarter last year. Six of Europe's largest oil companies posted first-quarter profits of $22 billion altogether, a 43% higher total than the previous year.

Lawmakers are proposing taxing major oil producers for their war windfalls, with Democrats introducing bills to tax per-barrel excise on companies that produced or imported at least 300,000 barrels of oil per day in 2025. The tax would be 50% of the difference between the oil price and last year's average.