Oil Majors Cash In Amid Strait of Hormuz Disruption

The Strait of Hormuz remains a major concern for oil markets, and it's affecting the world's largest oil companies. According to The Kobeissi Letter, ExxonMobil, Chevron, Shell, TotalEnergies, and BP generated almost $70 billion in free cash flow in Q2 2026, surpassing the previous peak of about $60 billion reached in Q2 2022.

This marks a 600% increase quarter-over-quarter, with net income across the group jumping more than 160% year-over-year to $47 billion, the third-largest on record. The Kobeissi Letter noted that 'oil companies are building unprecedented cash piles amid the Iran War.'

The price of Brent crude oil is rising due to the ongoing U.S.-Iran conflict, nearing $89 per barrel and reaching July levels. The U.S. Department of Energy reported last week that crude oil reserves in the Strategic Petroleum Reserve had fallen below 300 million barrels, their lowest level in over four decades.

Economist Steve Hanke commented on X, stating 'TRUMP'S WAR OF CHOICE ON IRAN = UNINTENDED CONSEQUENCES = STAY LONG OIL.'