Big Oil profits surge as Iran war keeps energy prices elevated

New York: Big oil companies continue to book massive profits as fighting in Iran disrupts energy markets and sends oil and gasoline prices sharply higher.

Six of Europe's largest oil companies posted combined first-quarter profits of $22 billion, more than 40% higher than last year. Profits at BP, based in London, more than doubled to $3.9 billion in the second quarter, the company said Tuesday

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And Saudi Aramco reported a 44% year-on-year increase in second-quarter net profit that reached $32.69 billion, driven by higher crude oil, refined products and chemicals prices.

The supercharged performances from big oil in Europe and the Middle East follow reports of enormous profits from the largest U.S. oil drillers last week.

As the conflict has dragged on, high oil prices have driven up the cost of gasoline, jet fuel and diesel, which has led to higher shipping costs. In the West, filling up the car or buying a plane ticket is costing consumers more. But the situation in parts of Asia are more dire because the region depends more heavily on fuel exported through the Strait of Hormuz. Fuel supplies have run low in some countries, leading to rationing and sporadic closures of schools and government offices.

Despite oil prices falling to their lowest level in three weeks Tuesday, big U.S. energy companies drew the ire of President Donald Trump, who criticized them this week for their outsized profits.

Trump said he's not happy with Chevron and Exxon Mobil, though energy prices skyrocketed only after the U.S. and Israel attacked Iran in late February, and the Strait of Hormuz was effectively closed off to tanker traffic.

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About 20% of the world's oil typically flows through the strait.

"They made too much money, too much money," Trump said Monday. "They ought to give some of that back to the public, and they better cut the retail price."

Exxon Mobil on Friday reported that its second quarter profits doubled to $14.5 billion, boosted by record diesel production. The oil giant, based in Spring, Texas, brought in $116 billion in revenue, up 42%.

Chevron, based in Houston, nearly quadrupled its profits to $12 billion and revenue jumped 56% to more than $70 billion.

On Tuesday, the price of U.S. crude oil fell 5.4%, or $4.36, to $75.98 per barrel. The sharp decline followed comments by Treasury Secretary Scott Bessent, who told CNBC that the U.S. and Iran "may have a deal today or tomorrow to open the Strait."

Oil prices for U.S. crude are down from around $92 a barrel in late July, but still more than 13% higher than when the conflict with Iran started.

Brent crude, the international standard, fell 4.9% to $83.87 per barrel.

A resolution to the Iran conflict, which has lasted more than five months, could give oil shippers the ability to send vessels out of the Persian Gulf, where tankers of oil and other products have been trapped during the fighting.