Trump's Iran War Fuels Big Oil Profits, Despite His Frustration

President Donald Trump recently expressed frustration at Texas oil companies Exxon Mobil and Chevron for making massive profits due to the ongoing Iran War. However, Chris Tomlinson of the Houston Chronicle points out that Trump's own actions have contributed to the war's impact on global oil prices.

The Iran War has led to a significant increase in the price of West Texas Intermediate (WTI) crude oil, which averaged $95 per barrel since the conflict began. In comparison, the market price for WTI had previously swung wildly between $56 and $114 per barrel this year.

Andrew Lipow, president of Houston-based Lipow Oil Associates, explained that the global petroleum industry is 'incredibly diffuse,' with multiple players involved in the supply chain. As a result, oil companies like Exxon and Chevron cannot simply 'give some of that back' to consumers by reducing their profits.

Lipow also warned that if Trump ends the Iran War, prices could collapse when oil floods the market in 2027 due to increased production from countries like the United Arab Emirates. Conversely, high diesel prices will remain a challenge until the Ukraine-Russia War is resolved and Russian refineries are rebuilt.