Oil Giants Reap Huge Profits as US-Iran Conflict Drives Up Crude Prices

Analysts expect major oil companies to report large profits due to the US-Iran conflict. The fighting has impeded petroleum shipments through the Strait of Hormuz, a narrow waterway that serves as a delivery route for a fifth of the world's oil and natural gas. As a result, prices for Brent crude soared from about $70 to above $100 a barrel in March, April, and May.

The elevated prices likely resulted in higher profits for big oil companies like Exxon Mobil and Chevron, which sold their goods at higher rates. The second-quarter earnings of these American oil and gas giants are set to be announced on Friday.

According to Global Witness, six European oil companies posted first-quarter profits of $22 billion altogether, a total 43% higher than the same time last year. Patrick Galey, fossil fuels lead at Global Witness, noted that 'there are constituencies around the world who are having a very good crisis, and the oil producers are one of them.'

However, some lawmakers propose taxing major oil producers for war windfalls. The tax proceeds would be redistributed to consumers. Democrats in Congress introduced bills in March to impose a per-barrel excise tax on companies that produced or imported at least 300,000 barrels of oil per day in 2025.