US-Iran Conflict Drives Energy Prices Higher, Boosting Oil Giants' Profits

A conflict between Iran and the US has driven energy prices higher, benefiting major oil companies like Exxon Mobil and Chevron.

The Strait of Hormuz, a narrow waterway that serves as a delivery route for nearly a fifth of the world's oil and natural gas, was largely shut down in March due to the fighting. As a result, global supplies were constrained, leading to a surge in prices for Brent crude from about $70 to above $100 a barrel.

Exxon Mobil reported that its second-quarter profits doubled to $14.53 billion, boosted by record diesel production. Chevron's profits nearly quadrupled to $12.07 billion, while revenue jumped 56% to $70.06 billion.

Patrick Galey, fossil fuels lead at Global Witness, said that oil producers are benefiting from the conflict, while hundreds of millions of people worldwide struggle with rolling blackouts, electricity curbs, and food shortages.