US-Iran conflict boosts oil company profits

The ongoing conflict between the United States and Iran, now in its sixth month, has severely disrupted global oil supplies by halting most shipping through the Strait of Hormuz, a critical waterway for about a fifth of the world's oil and natural gas. This disruption drove Brent crude prices from about $70 to above $100 per barrel, peaking at $126, and pushed U.S. gasoline prices above $4 per gallon. Major oil companies, particularly those with refining capacity, have reaped massive profits. ExxonMobil reported second-quarter profits of $14.53 billion, up 105% year-over-year, while Chevron reported $12.07 billion, up 385%. European oil majors also posted strong first-quarter profits, totaling $22 billion, a 43% increase, according to Global Witness. In response, Democratic lawmakers in the U.S. Congress, led by Senator Sheldon Whitehouse and Representative Ro Khanna, have introduced bills to impose a windfall profits tax on major oil producers. The conflict has also caused fuel rationing in Australia and government office closures in Nepal and Sri Lanka, while refineries in the U.S. are running near full capacity and enjoying historically high crack spreads. However, not all oil companies benefit equally; those in the Middle East and Russia face damaged facilities and reduced output.