Conflict-Driven Oil Price Spike Boosts ExxonMobil and Chevron Earnings

The ongoing conflict between Iran and the U.S. has led to a surge in earnings for major oil companies ExxonMobil and Chevron.

The Strait of Hormuz, a critical waterway that accounts for one-fifth of global oil shipments, was largely shut down due to the fighting, causing a significant increase in oil prices.

Brent crude prices soared from around $70 per barrel to over $100 during March, April, and May, with a peak of $126 per barrel at one point.

This price hike has resulted in massive profits for ExxonMobil and Chevron. The former 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, a 385% increase from the previous year.