Big Oil companies are reporting billions of dollars in second-quarter profits as fighting involving Iran disrupts oil shipments through the Strait of Hormuz. ExxonMobil reported $14.5bn, Chevron about $12bn and Saudi Aramco $32.69bn, while BP’s profit more than doubled to $3.9bn.
The gains have come as consumers face higher fuel and transport costs. The US national average for regular gasoline was $4.089 a gallon on August 4, 2026, according to AAA, while the Energy Information Administration linked the quarter’s stronger refinery margins and exports to disrupted Middle East supplies.
At a glance:
- ExxonMobil: $14.5bn second-quarter profit.
- Chevron: about $12bn, its strongest quarterly result in six years.
- Saudi Aramco: $32.69bn, up 44% year-on-year.
- TotalEnergies: $6bn adjusted net income and $9.8bn cash flow.
How much did the major oil companies make?
The biggest US producers led the latest wave of results. ExxonMobil said its second-quarter earnings doubled to $14.5bn, helped by higher oil prices and record diesel production. Chevron’s profit rose to about $12bn, with its upstream earnings reaching $8.2bn and downstream earnings $4.9bn, according to figures reported by the Associated Press.
Related coverage: US strikes on Iran trigger rise in oil prices and fall in global stocks amid Hormuz tensions.
European and Middle Eastern producers also benefited. Shell’s adjusted second-quarter earnings reached $9.84bn, more than twice its result a year earlier. TotalEnergies reported $6bn in adjusted net income on July 23. Saudi Aramco’s net profit rose 44% year-on-year to $32.69bn, helped by crude, refined-product and chemicals prices.
Why can companies profit during a supply disruption?
Oil prices respond to the global balance between available supply and demand, not simply to where an individual company produces its crude. The Energy Information Administration said Brent crude reached $118 a barrel on April 29 before falling to $72 on June 26, while uncertainty over shipping through Hormuz kept prices volatile.
That created an advantage for producers and refiners whose operations remained supplied. EIA said US gasoline refinery margins averaged 60% above the year-earlier level, while distillate and jet-fuel margins more than doubled. Refiners could sell fuels into tighter international markets, and companies with production outside the bottleneck could benefit from higher benchmark prices.
More context: Oil prices reach one-month peak as US-Iran conflict disrupts Strait of Hormuz shipping.
Why the Strait of Hormuz matters beyond the Gulf
The strait is a major route for crude oil, petroleum products and liquefied natural gas moving between the Persian Gulf and global buyers. When tanker traffic is restricted, traders compete for alternative cargoes, insurance becomes more expensive and buyers turn to suppliers in the United States and elsewhere.
The disruption therefore spreads beyond companies operating near Iran. EIA said US distillate exports averaged 1.56 million barrels a day in the second quarter, 30% above the five-year average, while jet-fuel exports averaged 356,000 barrels a day, more than twice that average. The same shift can raise shipping and aviation costs worldwide.
What does it mean for households and policymakers?
Higher company earnings do not automatically mean the companies caused every increase at the pump. Crude is traded in a global market, and ExxonMobil and Chevron do not set the retail price of gasoline. But their results show how producers and refiners can gain financially from the same disruption that raises costs for drivers, airlines, manufacturers and food distributors.
Also read: Bab al-Mandab Strait Tensions Drive Brent Crude Above $100 Amid Middle East Crisis.
The political response is intensifying. President Donald Trump said ExxonMobil and Chevron were making too much money from a shortage and called for lower consumer prices. The longer-term risk is broader inflation: EY said a prolonged closure of Hormuz could reduce UK economic growth to 0.3% in 2026, compared with its baseline forecast of 0.8%, if the disruption continues through the year.
Questions readers ask
Do higher oil-company profits mean gasoline prices will fall soon?
No. Profits and retail prices are related through crude costs, refining margins, taxes and distribution expenses, but companies do not control the entire chain. Prices could ease if tanker traffic resumes and supply fears fade, even while quarterly profits remain high.
Are all the profits directly caused by the Iran war?
No. The war-driven disruption is a major factor, but earnings also reflect production volumes, diesel and jet-fuel demand, trading results, refining capacity, cost control and company-specific operations. The reported figures are quarterly results, not a precise calculation of war-related gains.
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