Exxon and Chevron Report Massive Profits Amid U.S.-Iran Conflict

Major American oil companies reported massive profit increases in the second quarter of 2026, driven by a six-month conflict between the United States and Iran. The fighting halted most shipping through the Strait of Hormuz, causing Brent crude prices to climb from $70 to a peak of $126 per barrel between March and May. These supply constraints triggered global fuel shortages, resulting in sporadic fuel rationing in Australia and government office closures in Nepal and Sri Lanka.

Exxon Mobil doubled its second-quarter profits to $14.53 billion, while Chevron saw profits nearly quadruple to $12.07 billion. While Middle Eastern companies suffered revenue losses from blocked exports and damaged facilities, U.S. producers and refineries benefited from elevated prices and high crack spreads. A report from Global Witness indicated that six of the largest oil companies in Europe posted $22 billion in first-quarter profits during the period.

In response to these war windfalls, U.S. Senator Sheldon Whitehouse and Representative Ro Khanna introduced legislation in March to impose a per-barrel excise tax on major producers. The proposed windfall profits tax aims to redistribute the proceeds to consumers to offset the impact of the price spikes.