US-Iran Conflict Drives Up Energy Prices for Major Oil Companies

The ongoing conflict between the US and Iran has driven up energy prices globally, benefiting major oil companies such as Exxon Mobil and Chevron.

American oil giants reaped massive profits during the second quarter of this year, with Exxon Mobil's profits doubling to $14.53 billion and revenue increasing by 42% to $116.02 billion. Chevron nearly quadrupled its profits to $12.07 billion and revenue jumped 56% to $70.06 billion.

The conflict in the Middle East has halted most shipping through the Strait of Hormuz, a narrow waterway that previously served as a delivery route for a fifth of the world's oil and natural gas. This has led to a surge in Brent crude prices from about $70 to above $100 a barrel for much of March, April, and May.

Not all companies are benefiting equally, however. Refineries that have ample oil to work with, including those in the US, are turning high profits, particularly when making jet fuel and diesel. On the other hand, some Middle Eastern companies are struggling to get their liquefied natural gas out of the Persian Gulf or have damaged oil fields or processing facilities.