Oil companies are expected to reap big profits because of US-Iran conflict
Summary
The conflict between the U.S. and Iran has disrupted oil shipments and pushed global oil prices higher, leading to large profits for major oil companies in the spring of 2026. These companies sold oil at higher prices while consumers worldwide faced higher fuel costs and some countries experienced fuel shortages.Key Facts
- The U.S.-Iran conflict blocked most shipping through the Strait of Hormuz, a key route for about 20% of the world’s oil and natural gas.
- Oil prices rose from about $70 to over $100 per barrel during March to May 2026, reaching as high as $126.
- Large oil companies like Exxon Mobil and Chevron are expected to report high second-quarter profits.
- Six major European oil companies posted $22 billion in profits for the first quarter of 2026, which is 43% higher than the previous year.
- Higher fuel prices led to increased costs for drivers and airline passengers, as well as fuel shortages in countries like Australia, Nepal, and Sri Lanka.
- Some U.S. lawmakers have proposed a tax on extra profits made by oil companies due to the conflict, aiming to help consumers.
- Oil companies do not control oil prices; these are set by supply, demand, and market buyers.
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