US-Iran Conflict Fuels Oil Price Surge, Profits Soar for Major Companies

Oil companies are expected to reap big profits due to the ongoing US-Iran conflict. The conflict has halted most shipping through the Strait of Hormuz, a narrow waterway that serves as a delivery route for a fifth of the world's oil and natural gas.

As a result, prices for Brent crude have soared from about $70 to above $100 a barrel for much of March, April, and May. This has led to elevated profits for major oil companies like Exxon Mobil and Chevron, which sell their goods at higher prices.

The average price for a gallon of regular gasoline reached $4.10 this week, an increase of about $1 from the same time last year. Refineries are also enjoying historically high 'crack spreads,' meaning they're making huge profits based on the prices of oil and products like gasoline and jet fuel.

However, not all companies benefit equally in this situation. Companies in the Middle East that struggle to get their liquefied natural gas out of the Persian Gulf or have damaged oil fields or processing facilities are actually seeing reduced revenues and higher transportation costs and security costs.