Conflict in Iran Drives Record Corporate Profits

A conflict involving the United States, Israel, and Iran that began on February 28, 2026, has caused significant global economic shifts. The effective closure of the Strait of Hormuz by Iran halted approximately one-fifth of global oil and gas shipments, triggering extreme energy price volatility and market turbulence.

Donald Trump has claimed that a deal to end the conflict is within reach, though analysts warn that continued disruptions could lead to a global recession. Despite the humanitarian toll, including thousands of deaths and increased poverty, several corporate sectors reported record gains in the first quarter of 2026. Energy giants BP, Shell, and TotalEnergies saw profits surge, with BP's earnings more than doubling to $3.2 billion and Shell reporting $6.92 billion.

Wall Street's Big Six banks earned a combined $47.7 billion in the first quarter, bolstered by JP Morgan's trading arm, which generated a record $11.6 billion in revenue. Defense contractors, including BAE Systems, Lockheed Martin, and Boeing, reported record order backlogs as governments replenished weapon stocks and invested in air defense. The crisis also accelerated a transition to renewable energy, boosting firms such as NextEra Energy, Vestas, and Orsted.