Oil Giants to Reap Big Profits from US-Iran Conflict

Oil companies are expected to report significant profits due to the ongoing US-Iran conflict, which has disrupted petroleum shipments and driven up fuel prices. The Strait of Hormuz, a critical waterway for oil transportation, has been largely closed since March, causing Brent crude prices to soar from $70 to over $100 per barrel.

Analysts predict that Exxon Mobil and Chevron, two major US-based oil companies, will announce elevated profits when they release their second-quarter earnings on Friday. The conflict's impact on the global supply chain has resulted in historically high 'crack spreads' for refineries, which are turning crude oil into gasoline, diesel, and jet fuel.

However, not all oil companies benefit equally from the current market conditions. Companies in the Middle East that struggle to transport their liquefied natural gas or have damaged facilities have seen their revenues decline due to lower sales volumes and increased transportation costs.