Major oil and gas companies have accumulated approximately $130 billion in profits over a six-month period that coincided with the Iran war, a substantial increase compared to the previous year. This windfall for corporations occurred while American consumers experienced sharp rises in gasoline and diesel prices.
According to a New York Times analysis of financial reports, the profits from April through September were nearly triple the $47 billion earned during the same period in the prior year. The conflict, which began on February 28, initially disrupted global energy markets by impacting shipments through the Strait of Hormuz, a vital route for approximately one-fifth of the world's oil consumption. Although shipments have since recovered, consumers have not seen a significant decrease in fuel costs.
The largest oil companies, including ExxonMobil, Chevron, BP, Shell, and TotalEnergies, collectively reported $56.3 billion in adjusted third-quarter net income. Each of these companies exceeded Wall Street's profit expectations, with their refining operations proving particularly profitable. ExxonMobil's refining business alone achieved a record $9.05 billion in third-quarter profits, nearly five times its earnings from the same quarter a year ago. Chevron's refining, fuel marketing, and related operations generated $4.93 billion, approximately four times its year-earlier results and the division's strongest quarterly performance on record.
These figures highlight the financial benefits for companies capable of converting crude oil into gasoline and diesel, especially given a global shortage of fuel-making facilities. International oil prices have risen by about 60 percent since the US and Israel initiated strikes against Iran. Moody's Analytics chief economist Mark Zandi estimates the war has cost the average American household $2,000 since its commencement, totaling $256 billion. The conflict, along with Ukrainian attacks on Russian oil refineries, has taken roughly 10 percent of global refining capacity offline, allowing operational facilities to command higher profit margins.
For American drivers, the impact has been substantial. The national average for regular gasoline reached $4.20 per gallon on a recent Friday, up from $2.98 before the Iran conflict began. Diesel prices saw an even more significant increase, rising from $3.68 to $6.32 per gallon, a jump of about 72 percent.
Derek Reisfield, co-founder of MarketWatch, suggested that diesel prices might remain high due to long-standing limitations in US refining capacity, noting that "There is no short-term fix. This problem has been brewing for a long time." He also cautioned that persistently high oil prices could eventually encourage greater investment in alternative energy sources.
President Donald Trump has previously expressed frustration with the industry's high earnings, urging companies like ExxonMobil and Chevron in August to return some profits to the public and reduce consumer prices. However, he has also celebrated the booming oil and gas business during campaign appearances. White House spokesperson Taylor Rogers stated that the administration's priority is lowering fuel costs, with prices expected to fall once the conflict with Iran concludes.
Investors have also benefited from the energy sector's performance, with shares of ExxonMobil and Chevron increasing by approximately 52 percent this year. Susannah Streeter, chief investment strategist at Wealth Club, noted that the energy crisis has created numerous stock market winners, with oil giants being among the most significant beneficiaries.
ExxonMobil closed a recent trading day at $185.58, while Chevron finished at $235.74, reflecting increased investor confidence in the energy sector. BP CEO Meg O'Neill highlighted the company's efforts to maintain energy supplies amid market disruptions, stating that refineries are operating near capacity and strategic reserves are being utilized to fill market gaps.