Oil Giants Cash In on Global Conflict
The ongoing conflict between the US and Iran has led to massive profits for major oil companies. The Strait of Hormuz, a narrow waterway that serves as a delivery route for a fifth of the world's oil and natural gas, was halted in its sixth month, causing global supplies to be constrained.
As a result, prices for Brent crude soared from about $70 to above $100 a barrel for much of March, April, and May. At one point, they reached $126.
Exxon Mobil reported doubling its second-quarter profits to $14.5 billion, up 105% from the same time last year. Chevron nearly quadrupled its profits to $12.1 billion, up 385% from the same quarter last year.
Six of Europe's largest oil companies posted first-quarter profits of $22 billion altogether, a total that was 43% higher than the same time last year.