US-Iran Conflict Shifts Global Oil Trade Balance

The ongoing conflict between the US and Iran has reshaped global oil trade in America's favor. While the fighting disrupted shipping through the Strait of Hormuz, damaging Iran's energy infrastructure and putting pressure on its oil-dependent economy, it also boosted profits for Western energy companies.

According to an Associated Press report, Europe's six largest oil companies gained a combined 40 percent compared to their last year's profits, posting a cumulative first-quarter profit of $22 billion. Texas-based energy giants Chevron and ExxonMobil reported strong earnings as well: Chevron's second-quarter profits reached $12 billion, roughly four times higher than during the same period last year, while ExxonMobil posted quarterly profits of $14.5 billion.

The US Energy Information Administration (EIA) noted that countries with alternative export routes, such as Saudi Arabia and the UAE, were better positioned to maintain shipments during the conflict. In contrast, producers that rely heavily on the Strait, including Iran, Iraq, Kuwait, Qatar, and Bahrain, faced greater challenges.