Trump Under Pressure as Oil Giants Report Record Profits
US oil giants ExxonMobil and Chevron are set to report massive profits in their second-quarter earnings, but the boon is also generating political backlash. The surge in profits is largely due to the US-Iran war, which has led to a supply shock caused by the virtual closure of the Strait of Hormuz.
The conflict has tightened oil product supplies, boosting refining margins and lifting crude oil and natural gas prices. ExxonMobil's output was dented due to Iran's strikes on key assets in Qatar and the United Arab Emirates, but it still projects a profit of $14.9 billion, more than double its year-ago period.
Chevron is forecast to report profits of $11.1 billion, over four times its 2025 level. The large profit increases have generated criticism from NGOs like Oxfam, which has called for windfall profit taxes to address climate change.
President Donald Trump has also lashed out at gasoline prices, directing the Department of Justice to investigate any 'gouging' by the industry. US prices stood at $4.10 per gallon on Thursday, about 31% above year-ago levels, according to the American Automobile Association.