U.S. oil and gas companies reported substantial profits this spring amid ongoing tensions between Iran and the United States that disrupted petroleum shipments and contributed to higher fuel prices worldwide. The conflict, now entering its sixth month, has largely halted shipping through the Strait of Hormuz, a critical chokepoint that previously facilitated about 20% of global oil and natural gas deliveries.

As supply constraints tightened, the price of Brent crude, the international benchmark, surged from roughly $70 a barrel to above $100 for much of March through May, peaking at $126. Rising fuel costs translated into higher prices for gasoline, diesel, and jet fuel, impacting consumers and increasing transportation expenses for drivers and airlines.

Exxon Mobil reported second-quarter profits of $14.53 billion, doubling the previous year’s figures, supported by record diesel production. The company’s revenue reached $116.02 billion, a 42% increase. Chevron posted nearly fourfold profits of $12.07 billion and revenue of $70.06 billion, up 56%. Across the Atlantic, six of Europe’s largest oil companies collectively disclosed first-quarter profits of $22 billion, a gain exceeding 40% compared to the prior year.

Patrick Galey, fossil fuels lead at Global Witness, criticized the disparity created by the crisis, highlighting that while oil producers benefit financially, millions of people face hardships such as power outages, electricity rationing, food shortages, and increased costs stemming from disruptions to fertilizer supplies. “We don’t think that it’s a justifiable price for the rest of the world to be paying,” he said.

Although these firms do not directly set oil prices, which are influenced by global supply and demand dynamics, the recent surge in crude prices elevated earnings significantly. In response, some U.S. lawmakers have moved to address what they characterize as excessive gains by major producers. In March, Democratic members of Congress introduced legislation proposing a windfall profits tax targeting companies producing or importing at least 300,000 barrels of oil per day in 2025.

Senator Sheldon Whitehouse of Rhode Island, who sponsored the Senate version, said the tax would be a fair mechanism to recapture extraordinary profits and redirect revenues to support social programs, such as those focused on child nutrition. A companion bill was introduced by Representative Ro Khanna of California.

In the United States, the average price for a gallon of regular gasoline rose sharply throughout the spring months, climbing from under $3 prior to the escalation of conflict with Iran to $4.11 by early July, roughly $1 higher than the same period last year. The continuing geopolitical uncertainties and supply interruptions suggest that fuel price volatility may persist in the near term.