US-Iran Conflict Fuels Massive Profits for Oil Giants
A conflict between the US and Iran has driven up energy prices worldwide, benefiting American oil and gas giants.
The war has halted most shipping through the Strait of Hormuz, a narrow waterway that previously served as a delivery route for about a fifth of the world's oil and natural gas. As a result, global supplies are constrained, pushing Brent crude prices above $100 a barrel in March, April, and May.
Oil companies like Exxon Mobil and Chevron have seen massive profits during this time, with Exxon reporting a second quarter profit of $14.53 billion, more than double its previous year's earnings. Chevron's profits nearly quadrupled to $12.07 billion, while its revenue jumped 56% to $70.06 billion.
Patrick Galey, fossil fuels lead at Global Witness, said that oil producers are benefiting disproportionately from the conflict, while hundreds of millions of people around the world struggle with rolling blackouts and rationing.