Houston Oil Giants Reap Massive Profits from US-Iran Conflict

Oil companies based in Houston, including Exxon Mobil and Chevron, have seen massive profits due to the conflict between the U.S. and Iran, which has driven up energy prices.

The price of Brent crude oil soared from around $70 to above $100 a barrel for much of March, April, and May, with some days reaching as high as $126 per barrel.

This increase in price has resulted in huge profits for the big publicly traded oil companies. Exxon Mobil reported doubling its second-quarter profits to $14.53 billion, up 105% from the same time a year ago, while Chevron nearly quadrupled its profits to $12.07 billion, up 385% from the same quarter last year.

Not all refineries have been able to get the supply of crude oil they need to meet demand since the conflict began, said Timothy Fitzgerald, a University of Tennessee professor of business economics who studies the petroleum industry.