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

The ongoing conflict between the US and Iran has led to higher energy prices, benefiting major oil companies like Exxon Mobil and Chevron.

With the Strait of Hormuz blocked, a fifth of the world's oil and natural gas shipments were halted, leading to a surge in Brent crude prices from $70 to over $100 a barrel in March, April, and May. The average price for a gallon of regular gasoline in the US reached $4.11 on Friday.

Exxon Mobil reported doubling its second-quarter profits to $14.53 billion, up 105% from last year, while Chevron nearly quadrupled its profits to $12.07 billion, up 385% from last year.

The profits come as the US and some European countries are proposing a windfall tax on oil producers to redistribute the gains to consumers.