US Oil Giants Eye Massive Profits Amid Iran War Disruptions
US oil giants ExxonMobil and Chevron are set to report massive profits on Friday, fueled by the ongoing US-Iran war that has disrupted global crude oil supplies. The Strait of Hormuz, through which one-fifth of the world's crude oil passes each day, has been virtually closed due to the conflict.
The closure of the Strait has led to a sharp increase in crude oil and natural gas prices, resulting in huge profits for the oil industry. ExxonMobil is projected to report $14.9 billion in quarterly profits, more than double its profit from last year, while Chevron is forecast to report profits of $11.1 billion, more than four times its 2025 level.
However, the industry's profit windfall has generated political blowback, with President Donald Trump directing the Department of Justice to investigate any 'gouging' perpetrated by the industry. Trump has also criticized the high gasoline prices, which have shot back above $4 a gallon on the latest war escalations.
NGOs such as Oxfam have blasted continued fossil fuel investment, calling for windfall profit taxes that are supported in some European countries but not in Washington. The organization's climate policy lead Mariana Paoli said it is 'really unfair' that companies like ExxonMobil and Chevron are making huge profits while people are suffering.