Oil Majors Reap $93 Billion Windfall from Iran Conflict

**Oil Majors Reap $93 Billion Windfall Amid Middle East Conflict**

The near-total shutdown of the Strait of Hormuz—a vital shipping route linking Asia and Europe—has triggered a sharp rise in global oil prices. This surge has fueled massive profits for major oil and gas corporations, particularly those based in the United States and Europe. As select producers ramp up output to compensate for the supply gap, several oil giants have recorded historic earnings in the first half of the year, a trend expected to persist as long as transit through the strait remains restricted.

Following a U.S.-Israeli military strike on Iran and the ensuing war, eight of the world’s largest energy companies generated a combined profit exceeding $90 billion during the second quarter (April to June). Iran’s closure of the Strait of Hormuz, which connects the Persian Gulf to the Gulf of Oman and the Arabian Sea, has caused the most severe disruption to global fossil fuel supplies in history. With a handful of multinational firms stepping in to meet demand amid elevated prices, these corporations have emerged as the primary financial beneficiaries.

This supply crisis has underscored the global economy’s deep reliance on fossil fuels, with nations paying premium rates to secure energy resources amid widespread shortages. Climate advocates warn that this continued dependence exacerbes global warming, as greenhouse gas emissions remain high. Observers also note that a lack of energy diversification continues to threaten international energy security.

The eight analyzed corporations—Aramco, BP, Shell, Equinor, TotalEnergies, Eni, Chevron, and ExxonMobil—nearly doubled their collective profits compared to the second quarter of 2025, when earnings stood just below $50 billion. While rising energy costs stretch household budgets worldwide, these soaring corporate profits have renewed calls for windfall taxes. Proponents argue that higher levies should be used to subsidize consumer utility bills and fund efforts to mitigate environmental damage.

The Brent crude benchmark climbed from approximately $68 per barrel in late February to peaks near $100 per barrel in May. Saudi Aramco capitalized most significantly on this price surge, posting a 34 percent increase in quarterly net income to over $33 billion. These profits were achieved despite drone and missile strikes targeting Aramco’s infrastructure by Iranian and Houthi forces.

British multinational BP recorded a second-quarter profit of $5.73 billion, nearly doubling its earnings from the same period last year and exceeding market forecasts. This represented BP’s strongest quarterly performance since late 2022.

Critics have condemned these earnings. Patrick Galey, fossil fuel lead at the non-governmental organization Global Witness, described the profits as scandalous, stating that ordinary families are bearing the cost of high energy bills and climate disasters while major oil firms prioritize shareholder returns. Galey called on governments to hold energy companies financially accountable for climate-related damages.

In the United States, Chevron reported its highest quarterly profit in at least six years, beating Wall Street estimates with adjusted earnings of $12 billion. This included $8.2 billion from its upstream segment, representing a 200 percent year-over-year increase. Chevron’s Chief Financial Officer, Eimear Bonner, defended the performance, stating that the company continues to provide reliable energy amid geopolitical instability and market volatility.

However, the surge in oil industry earnings has drawn criticism from various sectors as consumers grapple with high inflation. Even U.S. President Donald Trump expressed disapproval of the high profits, despite his traditional support for the domestic oil and gas sector. Speaking to reporters at the White House on August 3, Trump criticized ExxonMobil and Chevron for generating excessive revenue from the supply shortage, stating that he disagreed with the high returns despite his support for free-market principles.

The unprecedented earnings generated during the conflict have intensified scrutiny from environmental groups, consumer advocates, and policymakers, prompting several governments to consider implementing or expanding windfall taxes on excess corporate profits.