Major energy producers worldwide are booking massive earnings as the ongoing conflict involving Iran keeps oil, gas, refined products, and chemical prices elevated, according to reports from Dailysabah. The hostilities, which escalated after the U.S. and Israel attacked Iran in late February, effectively closed the Strait of Hormuz to tanker traffic and disrupted global energy flows.
Energy Giants Report Profit Surge Amid Iran Conflict
Roughly 20% of the world’s oil typically flows through the Strait of Hormuz, a key conduit for Gulf oil. Saudi Aramco President and CEO Nasser stated that the war has caused a global loss of 2.6 billion barrels of crude oil—equivalent to nearly one month of normal production—primarily due to supply disruptions from the closed strait. Saudi Aramco reported a 44% year-on-year increase in second-quarter net profit, reaching $32.69 billion, driven by higher prices for crude oil, refined products, and chemical products, as detailed by Bitget.
Record Earnings Across U.S. and International Majors
The market shock has driven unprecedented financial returns for major petroleum and chemical-producing firms. Six of the world’s biggest companies posted a combined $79.4 billion in second-quarter net income during a period when Brent crude averaged about $104 a barrel, up more than 50% year on year, as reported by Thenationalnews.
U.S. giants Chevron and ExxonMobil emerged as the largest financial beneficiaries of the war, reporting a combined $26.6 billion in quarterly profit. ExxonMobil reported that its second-quarter profits doubled to $14.5 billion, boosted by record diesel production, while revenue rose 42% to $116 billion. Chevron delivered the sharpest earnings rebound among the majors, with net income soaring 385% (nearly quadrupling) to $12 billion as record U.S. output and the integration of its $53 billion Hess acquisition helped it capitalize on the price surge. European counterparts also saw major gains, with Shell’s net income tripling to $10.8 billion and BP’s profits more than doubling to $3.9 billion.
Political Pressure and Economic Strains
The surge in profitability has triggered political backlash and consumer strain. High oil prices have driven up the cost of gasoline, jet fuel, and diesel, leading to higher shipping costs and fuel rationing or sporadic closures of schools and government offices in parts of Asia that depend heavily on fuel exported through the Strait of Hormuz.
Market Volatility and Outlook
Energy markets remain highly sensitive to diplomatic and military developments. Treasury Secretary Scott Bessent told CNBC that the U.S. and Iran may have a deal today or tomorrow to open the Strait,
leading to a single-day 5.4% drop in U.S. crude oil to $75.98 per barrel. Despite recent declines from late-July highs of around $92 a barrel, U.S. crude prices remain more than 13% higher than when the conflict started.
Industry executives warn that recovering from the disruption will take time. Saudi Aramco’s CEO warned that even if the Strait of Hormuz were to reopen immediately, it would take as long as 18 months to replenish inventories at a rate of 2.1 million barrels per day. Meanwhile, a resolution to the conflict, which has lasted more than five months, could finally allow oil shippers to send vessels out of the Persian Gulf, where numerous tankers of oil and other products have remained trapped.
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