Big Oil posts record profits as Iran war disrupts Hormuz

Soaring crude prices triggered by the closure of the Strait of Hormuz propelled the world’s largest oil companies to record profits in the second quarter of 2026. ExxonMobil reported earnings of $14.5 billion, its highest in four years, though it fell short of Wall Street forecasts because of production disruptions in Qatar. Chevron’s profit hit $12 billion, a six-year high, while Shell more than doubled earnings to nearly $10 billion. BP posted $5.73 billion, more than twice the year-earlier figure, and TotalEnergies’ earnings rose 67 percent. Saudi Aramco, the state‑owned giant, saw a 44 percent jump to $32.69 billion.

Muyu Xu, a senior crude oil analyst at Kpler, said the average global benchmark crude price on the Intercontinental Exchange reached $96.68 per barrel in the second half of 2026, up from $78.38 in the first quarter and $66.71 in the second quarter of 2025. US oil futures averaged about $92 a barrel from April through June, roughly 27 percent higher than in the first three months of the year. Companies whose exports were unaffected by the Strait of Hormuz bottleneck benefitted from elevated prices and strong demand for non‑Middle Eastern crude, she added, while those with significant refining assets also gained from wider margins.

The surge in crude costs hit consumers hard. US petrol averaged above $4 a gallon, nearly 40 percent higher than before the war, according to the American Automobile Association. In the United Kingdom, petrol reached a record 160.85 pence per litre on August 3, 2026, with diesel above 180 pence, the Royal Automobile Club said. On the same day, forecasters at EY warned that the British economy could shrink in 2027 if the Strait of Hormuz does not reopen to shipping by mid‑2027.

US President Donald Trump reacted furiously to the windfalls on August 3, telling reporters that companies like ExxonMobil and Chevron are “making too much money based on a shortage.” “I’ll say it loud and clear: I’m not happy about it,” Trump said. He demanded they “cut the retail price, the consumer price,” and added that when a company makes “12 times what they made the year before, they ought to give some of that back to the public.”

Economists noted that while revenue rose alongside crude, profits grew even faster because of operating leverage and stronger refining margins, handing the largest firms a windfall.