Oil Giants Reap Billions as War in Strait of Hormuz Drives Up Prices

The ongoing conflict between Iran and the US has disrupted global oil supplies, causing prices to soar. The Strait of Hormuz, a key waterway for oil shipments, has been largely closed due to the fighting, affecting about a fifth of the world's oil and natural gas deliveries.

As a result, Brent crude prices rose from around $70 to above $100 a barrel for much of March, April, and May, with one point reaching as high as $126. This has led to increased costs for drivers and airline passengers, with gasoline, diesel, and jet fuel prices climbing sharply.

Major oil companies such as Exxon Mobil and Chevron have benefited from the situation, with their profits doubling or nearly quadrupling in some cases. For example, Exxon's second quarter profits rose to $14.53 billion, a 42% increase in revenue to $116.02 billion.

However, not everyone is pleased with the windfall profits of these companies. Patrick Galey, fossil fuels lead at Global Witness, said that 'there are constituencies around the world who are having a very good crisis' due to the oil producers' gains, while hundreds of millions of people struggle with food queues and electricity curbs.