US-Iran Conflict Drives Oil Company Profits Amid Global Fuel Shortages

The ongoing US-Iran conflict has led to increased profits for major oil companies due to disrupted petroleum shipments and higher fuel prices worldwide. The conflict, now in its sixth month, halted most shipping through the Strait of Hormuz, a narrow waterway that accounts for a fifth of global oil and natural gas deliveries.

Brent crude prices soared from about $70 to above $100 a barrel in March, April, and May, with some days reaching as high as $126. This surge in prices resulted in elevated profits for companies like Exxon Mobil and Chevron, which sold their goods at higher rates.

Exxon and Chevron's second-quarter earnings will be announced on Friday, and the money they accrued between April and June may face extra scrutiny this year. The average price of a gallon of regular gasoline climbed to $4.10 during this period, increasing costs for drivers and airline passengers.

Six major European oil companies posted first-quarter profits totaling $22 billion, a 43% increase from the same time last year, according to Global Witness. However, some experts caution that these profits come at the expense of consumers worldwide who are struggling with fuel shortages and higher prices.