Oil Giants Reap Huge Profits from Middle East Conflict

Oil giants Exxon Mobil and Chevron have reported massive profits in the second quarter due to the ongoing conflict in the Middle East, which has disrupted global energy supplies and pushed crude prices above $100 a barrel. Brent crude climbed from around $70 to over $100 a barrel through much of April, May, and June, peaking at $126.

The fighting 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. As a result, fuel costs for consumers have skyrocketed, with Exxon Mobil reporting a second-quarter profit of $14.53 billion, more than double what it was last year 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. The earnings have sparked calls for a windfall profits tax in Washington, with Democratic lawmakers introducing legislation that would tax large oil producers on profits earned from 2026 onward and redistribute the proceeds to consumers.