Oil Majors Profits

Exxon Mobil and Chevron posted dramatic second-quarter profit surges as the ongoing U.S.–Iran conflict choked a vital global shipping lane and drove energy prices higher. Exxon Mobil more than doubled its quarterly profit to $14.5 billion, with revenue climbing 42 percent to $116 billion, while Chevron quadrupled its earnings to roughly $12.1 billion. Six of Europe's largest oil companies earned a combined $22 billion, up 43 percent year-on-year, and Austria's OMV saw operating profit rise 65 percent to €1.71 billion.

The Strait of Hormuz remains severely restricted since hostilities began in late February. Iran claimed on Friday to have struck two U.S.-escorted tankers, and ship-tracking data recorded just 10 transits on July 31, compared with a pre-war average of 60 per day. Global refining capacity has fallen nearly 9 percent, compounded by damage to a key Qatari LNG facility.

With gasoline prices still above $4 a gallon, Exxon Mobil CEO Darren Woods cautioned against expecting near-term relief, warning that upward price pressure on petroleum products will persist into the third quarter and beyond.

Shell reported a net profit of $10.8 billion for the second quarter of 2026, nearly tripling from $3.6 billion a year earlier, as revenue jumped 45% to $96.4 billion. The adjusted profit reached $9.84 billion, beating analyst expectations, and was the second highest on record after the period following Russia's invasion of Ukraine. The company announced a $3 billion share buyback as shares rose around 1.5%.

The results were buoyed by the impact of the Iran conflict on global oil and gas trade, with Brent crude trading above $90 a barrel on Thursday. LNG earnings grew 55% to $2.7 billion, while the chemicals and products division earned $2.3 billion, up sharply from $118 million a year ago.

Despite the strong earnings, gas production fell 30% year-on-year after Iranian drone strikes damaged Shell's Pearl gas-to-liquids plant in Qatar in March. Repairs are expected to take about a year.

Oil prices surged more than 7% on Tuesday after the United States and Saudi Arabia launched airstrikes against Iran-backed groups in Iraq, reversing a brief market rally that had followed a pause in hostilities.

Brent crude rose to around $90 a barrel and US WTI climbed above $84 as tensions escalated following Iran's attacks on ships in the Strait of Hormuz and US bases in Jordan. President Donald Trump vowed retaliatory strikes against Iran in a Fox News interview, while Tehran rejected an Omani proposal for joint management of the strategic waterway and seized three tankers.

Adding upward pressure, US crude inventories fell by 7.2 million barrels last week and OPEC+ is expected to halt output increases for three months starting in October.