US-Iran Conflict Drives Energy Prices Higher, Boosting Big Oil Profits
A six-month conflict between Iran and the US has driven energy prices higher, benefiting American oil and gas giants. The fighting in the Strait of Hormuz, a narrow waterway through which a fifth of the world's oil and natural gas is transported, has resulted in increased costs for consumers worldwide.
The price of Brent crude oil, the international standard, soared from around $70 to above $100 per barrel during March, April, and May. In some cases, prices reached as high as $126 per barrel.
Exxon Mobil reported a 105% increase in second-quarter profits to $14.53 billion, with revenue reaching $116.02 billion, up 42% from the same time last year. Chevron nearly quadrupled its profits to $12.07 billion, up 385% from the previous quarter.
Lawmakers have proposed taxing major oil producers for their war-related windfalls, but critics argue that this would not address the issue of rising energy costs.