Oil Giants Soar as Global Energy Prices Skyrocket Amid US-Iran Conflict
A recent surge in energy prices has greatly benefited major oil companies like Exxon Mobil and Chevron. The conflict between the US and Iran, now in its sixth month, has halted most shipping through the Strait of Hormuz, a narrow waterway that previously served as a delivery route for a fifth of the world's oil and natural gas.
As global supplies were constrained, prices for Brent crude soared from about $70 to above $100 a barrel for much of March, April, and May. Exxon Mobil reported its second-quarter profits doubled to $14.53 billion, boosted by record diesel production. The company brought in $116.02 billion in revenue, up 42%.
Meanwhile, Chevron nearly quadrupled its profits to $12.07 billion and revenue jumped 56% to $70.06 billion. Six of Europe's largest oil companies posted combined first-quarter profits of $22 billion, more than 40% higher than last year.
Patrick Galey, fossil fuels lead at Global Witness, a nonprofit organization that investigates environmental issues, noted that oil producers are benefiting greatly from the crisis, while many people around the world struggle with electricity curbs, rationing, and food shortages. Lawmakers have proposed taxing major oil producers for their war windfalls.