Oil Giants Cash In On Middle East Conflict as Crude Prices Soar

Oil giants Exxon Mobil and Chevron have reported massive profits due to the ongoing conflict in the Middle East, which has disrupted global energy supplies and pushed crude prices above $100 a barrel.

The fighting, now in its sixth month, has severely reduced shipping through the Strait of Hormuz, a key route that previously carried about one-fifth of the world's oil and natural gas. Brent crude climbed from about $70 to above $100 a barrel through much of April, May, and June, at one point reaching $126.

The surge in energy prices has boosted profits for producers while raising gasoline, diesel, and jet fuel costs for consumers. Fuel shortages have triggered rationing in parts of Australia and government office closures in Nepal and Sri Lanka.

Exxon Mobil reported second-quarter profit of $14.53 billion, double a year earlier, on revenue of $116.02 billion, up 42%. Chevron nearly quadrupled its profit to $12.07 billion as revenue climbed 56% to $70.06 billion. Europe's six largest oil companies collectively posted first-quarter profits of $22 billion, more than 40% higher than a year earlier.