Major oil companies are expected to post substantial second-quarter profits as the ongoing conflict between Iran and the United States disrupted global petroleum shipments, pushing fuel prices higher and triggering shortages in several countries.
The confrontation, now in its sixth month, halted most shipping through the Strait of Hormuz, the narrow waterway that previously carried roughly a fifth of the world’s oil and natural gas. With supplies constrained, Brent crude climbed from about $70 to above $100 a barrel for much of March, April and May, briefly touching $126.
Exxon Mobil and Chevron, the two largest American oil and gas producers, are due to announce their second-quarter earnings on Friday. Elevated crude prices during the April-to-June window are likely to translate into strong results as the companies sold output at premium prices.
The earnings arrive amid heightened scrutiny of the sector’s windfall. Gasoline, diesel and jet fuel prices all rose over the period, raising costs for motorists and airline passengers. Supplies ran short in some markets, prompting sporadic fuel rationing in Australia and government office closures in Nepal and Sri Lanka.
Six of Europe’s largest oil companies together posted first-quarter profits of $22 billion, a figure 43% higher than the same period a year earlier, according to Global Witness, a nonprofit that investigates environmental issues.
“There are constituencies around the world who are having a very good crisis, and the oil producers are one of them,” said Patrick Galey, fossil fuels lead at Global Witness, contrasting industry gains with the hardship faced by millions of consumers.
The surge marks the latest chapter in a crisis that has repeatedly rattled global energy markets since fighting erupted, sending benchmarks sharply higher and straining supply chains across multiple regions.
Some of that pressure has begun to ease in recent days. Commonwealth Bank of Australia noted that stronger flows through the Strait of Hormuz had calmed market concerns following the most recent US-Iran strikes, tempering the war premium built into crude prices.
Whether the recovery in shipping proves durable remains uncertain, and prices could swing again should tensions escalate. For now, investors will be watching Friday’s results closely to gauge how deeply the conflict has reshaped the balance sheets of the world’s biggest energy firms.