US-Iran Conflict Fuels Record Oil Profits for Majors
A prolonged conflict between the US and Iran has led to increased energy prices worldwide, resulting in massive profits for major oil companies. The Strait of Hormuz, a key shipping route, was blocked by the conflict, causing a shortage of petroleum supplies and driving up global energy prices.
The price of Brent crude, the international standard, soared from about $70 to over $100 a barrel in March, April, and May, with some days reaching as high as $126. Exxon Mobil reported doubling its second-quarter profits to $14.53 billion, up 105% from the same time last year, while Chevron nearly quadrupled its profits to $12.07 billion, up 385%.
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. The organization's fossil fuels lead, Patrick Galey, stated, 'There are constituencies around the world who are having a very good crisis, and the oil producers are one of them.'