US-Iran Conflict Fuels Massive Profits for Oil Giants

American oil and gas giants have raked in massive profits while fighting between Iran and the US has impeded petroleum shipments, driving up energy prices. The conflict, now in its sixth month, 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.

With global supplies constrained, prices for Brent crude soared from about $70 to above $100 a barrel for much of March, April, and May. Exxon Mobil on Friday reported doubling its second-quarter profits to $14.53 billion, up 105% from the same time last year. Chevron nearly quadrupled its profits to $12.07 billion, up 385% from the same quarter last year.

Six of Europe's largest oil companies posted first-quarter profits of $22 billion altogether, a total that was 43% higher than the same time last year, according to Global Witness. Patrick Galey, fossil fuels lead at Global Witness, stated, 'There are constituencies around the world who are having a very good crisis, and the oil producers are one of them.'

Lawmakers propose taxing major oil producers for war windfalls, with Democrats in Congress introducing bills to tax profits they show from 2026 onward. The tax proceeds would be redistributed to consumers.