Big oil companies continue to post banner profits as fighting in Iran drives costs higher
Summary
Big oil companies are making very large profits as fighting in Iran causes oil and gasoline prices to rise. The conflict has increased fuel costs worldwide, affecting consumers and businesses, especially in Asia where fuel through the Strait of Hormuz is critical.Key Facts
- Six of Europe’s largest oil companies made $22 billion in profits in the first quarter, up more than 40% from last year.
- BP’s profits more than doubled to $3.9 billion in the second quarter.
- Saudi Aramco’s net profit rose 44% to $32.69 billion in the second quarter due to higher prices for oil and related products.
- U.S. oil companies Exxon Mobil and Chevron also reported huge profit increases, with Exxon doubling profits to $14.5 billion and Chevron nearly quadrupling profits to $12 billion.
- Fighting in Iran and attacks on the country led to the Strait of Hormuz being effectively closed, disrupting global oil supplies.
- About 20% of the world’s oil usually passes through the Strait of Hormuz.
- Higher fuel prices caused by the conflict have increased costs for gasoline, jet fuel, and diesel, impacting consumers and shipping.
- President Donald Trump criticized U.S. oil companies for making too much money and urged them to reduce retail fuel prices.
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