US-Iran Conflict Drives Record Oil Profits for Exxon and Chevron

A six-month conflict between the US and Iran has led to record profits for major oil companies like Exxon Mobil and Chevron. The fighting has halted most shipping through the Strait of Hormuz, a narrow waterway that accounts for a fifth of global oil supplies.

As a result, Brent crude prices soared from $70 to above $100 a barrel in March, April, and May, reaching a peak of $126. Exxon Mobil's profits doubled to $14.53 billion, boosted by record diesel production, while Chevron nearly quadrupled its profits to $12.07 billion.

Refineries like those owned by Exxon and Chevron are profiting from the high prices, despite processing less crude and selling less products. 'The return on refining has skyrocketed,' said Tom Seng, assistant professor of energy finance at Texas Christian University.

However, not all oil companies benefit equally. Companies in the Middle East struggling to export liquefied natural gas or with damaged oil fields or facilities have seen their revenues decline.