US-Iran Conflict Drives Oil Profits Amid Global Fuel Price Surge

Analysts expect major oil companies to report significant profits due to the ongoing US-Iran conflict, which has disrupted petroleum shipments and driven up fuel prices worldwide.

The Strait of Hormuz, a critical waterway for global oil supplies, was largely shut down after the conflict began six months ago. As a result, Brent crude prices skyrocketed from about $70 per barrel to above $100 in March, April, and May, reaching a high of $126.

Exxon Mobil and Chevron, two of the largest American oil companies, are set to announce their second-quarter earnings on Friday. Industry analysts predict that these companies will have reaped substantial profits from selling their goods at higher prices during this period.

The profit margins for refineries have also increased dramatically due to high 'crack spreads,' which describe the difference between crude oil and refined product prices. With historically high crack spreads, refineries are turning huge profits, particularly those in the US that have ample crude oil supply and can meet demand.