Gulf Conflict Drives Oil Prices to Triple Digits

A conflict in the Gulf initiated by Donald Trump has driven global oil prices into triple digits, creating a massive financial windfall for the energy sector. In the second quarter of 2026, the combined profits of Saudi Aramco and the seven largest Western integrated oil companies reached $91 billion. This price surge follows shipping attacks in the Strait of Hormuz and a September 11 drone attack that forced the shutdown of the East-West pipeline in Saudi Arabia.

Initially, the five largest oil majors used these gains to increase shareholder payouts and reduce combined net debt by $36 billion. However, the prolonged nature of the price spike is now shifting corporate strategy toward expansion. To counter natural field depletion and reduce reliance on the Middle East, companies are increasingly deploying artificial intelligence for exploration.

This strategic shift has triggered a wave of consolidation. Six deals exceeding $1 billion have been announced over the last two months. Industry analysts expect further mergers and acquisitions as firms race to secure new resources before the end of the current U.S. administration.