Why are oil companies posting record profits amid Iran war disruption?
Major oil companies including ExxonMobil, Chevron, Shell, BP, and Saudi Aramco have reported record or near-record quarterly profits amid disruptions to global energy supplies caused by the Strait of Hormuz closure and regional conflict. Elevated oil prices and strong refining margins have driven earnings across the sector, though some companies faced production disruptions.
The closure of the Strait of Hormuz has created significant disruption to global energy flows, causing oil prices to rise substantially over recent months. This supply constraint has benefited major oil producers worldwide, with companies reporting exceptional financial results in their latest quarterly earnings.
ExxonMobil, the largest US oil company, posted second-quarter earnings of $14.5 billion with adjusted earnings of $14.7 billion, marking its highest quarterly profits in four years. The company's results were driven by elevated oil prices and stronger refining margins, though earnings fell slightly short of Wall Street expectations due to production disruptions in Qatar. Chevron, the second-largest US oil company, reported second-quarter earnings of $12 billion, its strongest quarterly performance in six years and above analyst estimates. The company's upstream operations surged 200 percent year-on-year to $8.2 billion, while downstream earnings reached $4.9 billion.
Europe's largest oil company, Shell, more than doubled its second-quarter earnings to nearly $10 billion, exceeding analyst expectations despite some Middle East production disruptions. The company benefited from increasing oil and gas prices and resilient liquefied natural gas operations. French oil giant TotalEnergies saw earnings rise 67 percent in the second quarter, its best quarter in nearly three years, supported by higher oil prices and strong refining margins, though partially offset by weaker LNG earnings. BP reported second-quarter profit of $5.73 billion, more than double the prior year's $2.35 billion and above forecasts.
The windfall extended to state-owned producers as well. Saudi Aramco, the world's largest state-owned oil producer, reported quarterly earnings rising 44 percent year-on-year to $32.69 billion. The company has reduced its reliance on the Strait of Hormuz through its East-West Pipeline. According to crude oil analyst Muyu Xu at Kpler, the average global benchmark price for crude oil on the Intercontinental Exchange stood at $96.68 per barrel in the second half of 2026.
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