Major oil companies continue to report substantial profits as ongoing conflict in Iran disrupts global energy markets, leading to significant increases in oil and gasoline prices. The first quarter of the year saw six of Europe’s largest oil firms collectively earn $22 billion, marking an increase of more than 40% compared to the previous year. BP, headquartered in London, announced its second-quarter profit more than doubled to $3.9 billion, a figure disclosed Tuesday. Meanwhile, Saudi Aramco posted a 44% rise in net profit for the second quarter, reaching $32.69 billion, propelled by higher prices for crude oil, refined products, and chemicals.
These impressive earnings from key players in Europe and the Middle East follow last week’s reports of record profits by leading U.S. oil producers. The conflict in Iran has pushed oil prices upward, escalating costs for gasoline, jet fuel, and diesel worldwide. In Western countries, consumers face higher expenses at the pump and for air travel. In parts of Asia, where fuel imports heavily rely on shipments passing through the Strait of Hormuz, the impact has been more severe, resulting in fuel shortages, rationing, and intermittent shutdowns of schools and government offices.
Despite a recent drop in oil prices to their lowest level in three weeks, U.S. President Donald Trump expressed dissatisfaction with major American energy firms, criticizing companies such as Chevron and Exxon Mobil for their large profits. Trump linked the price surge to a U.S. and Israeli military action against Iran in late February, which led to the effective closure of the Strait of Hormuz to tanker traffic—a chokepoint that normally handles about 20% of global oil shipments. “They made too much money, too much money,” Trump said, urging these companies to reduce retail prices and return profits to the public.
Exxon Mobil, based in Spring, Texas, reported second-quarter profits that doubled to $14.5 billion, buoyed by record diesel output and revenues of $116 billion, up 42%. Houston-based Chevron nearly quadrupled its profits to $12 billion, with revenues increasing 56% to over $70 billion.
On Tuesday, U.S. crude oil prices dropped 5.4% to $75.98 per barrel following remarks by Treasury Secretary Scott Bessent, who indicated a potential agreement between the U.S. and Iran might reopen the Strait of Hormuz. Brent crude, the global benchmark, fell 4.9% to $83.87 per barrel. Although oil prices have declined from approximately $92 per barrel in late July, they remain more than 13% higher than before the conflict began more than five months ago.
A resolution of the Iran conflict could allow tanker traffic to resume through the Persian Gulf, easing supply constraints that have trapped vessels in the region. Meanwhile, shares of major oil companies have gained between 20% and 30% this year, significantly outperforming the 13% rise in the broader S&P 500 index.