NEW YORK – Major energy companies across the United States, Europe and the Middle East reported another quarter of strong profits as elevated crude oil prices continued to support earnings amid ongoing conflict involving Iran.
The latest financial results highlight how prolonged geopolitical tensions have benefited oil producers while keeping fuel prices high for households, airlines and businesses that rely on energy. Although crude prices retreated this week on renewed hopes for diplomacy, they remain well above levels seen before the conflict began.
Higher Oil Prices Drive Producer Earnings
Several of the world’s largest oil companies reported substantial increases in quarterly profits.
BP said its second-quarter net profit more than doubled to $3.9 billion as stronger crude prices and improved refining margins boosted earnings.
Saudi Aramco also posted sharply higher results, reporting a 44% increase in second-quarter net profit to $32.69 billion. The company said higher prices for crude oil, refined petroleum products and chemicals supported the gains.
The results followed strong earnings from the largest U.S. oil producers.
Exxon Mobil reported second-quarter profit of $14.5 billion, double the amount earned a year earlier, while revenue climbed 42% to $116 billion. The company credited record diesel production and favorable market conditions for the improvement.
Chevron also delivered stronger results, with quarterly profit nearly quadrupling to $12 billion. Revenue increased 56% to more than $70 billion during the quarter.
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Collectively, six of Europe’s largest oil companies generated about $22 billion in first-quarter profit, more than 40% higher than the same period last year.
Consumers Continue to Feel Higher Energy Costs
While energy producers benefited from stronger prices, consumers and businesses continued to face higher fuel costs.
Elevated crude prices have increased the cost of gasoline, diesel and jet fuel, raising transportation expenses and contributing to higher shipping costs and airfares.
The impact has been especially significant in parts of Asia that rely heavily on energy shipments passing through the Strait of Hormuz, one of the world’s most important oil transit routes.
Some countries have experienced fuel shortages, leading to rationing measures and temporary closures of schools and government offices.
Roughly one-fifth of global oil supplies normally pass through the Strait of Hormuz, making disruptions to shipping a major concern for international energy markets.
Trump Criticizes Industry Profits
President Donald Trump criticized major U.S. oil companies after the latest earnings reports, arguing that consumers should benefit more from lower fuel prices.
Speaking Monday, Trump said companies such as Chevron and Exxon Mobil had earned excessive profits following the rise in oil prices after the conflict involving Iran intensified.
“They made too much money, too much money,” Trump said. “They ought to give some of that back to the public, and they better cut the retail price.”
Oil Prices Retreat on Diplomatic Optimism
Oil prices declined sharply Tuesday after renewed optimism that diplomatic efforts could help reopen the Strait of Hormuz.
Treasury Secretary Scott Bessent told CNBC that the United States and Iran “may have a deal today or tomorrow” to restore shipping through the strategic waterway.
U.S. benchmark crude fell 5.4%, or $4.36, to settle at $75.98 per barrel, while Brent crude dropped 4.9% to $83.87 per barrel.
Despite the pullback, U.S. crude prices remain more than 13% above pre-conflict levels, reflecting continued concerns over global energy supplies.
Analysts say a lasting diplomatic agreement could allow tankers to resume normal operations, improving fuel supplies and easing pressure on oil markets.
Energy Stocks Continue to Outperform
Energy shares have remained among the strongest-performing sectors this year.
Major oil producers have gained roughly 20% to 30%, outperforming the broader U.S. stock market. By comparison, the S&P 500 has advanced about 13% over the same period.
The latest earnings demonstrate how sustained geopolitical tensions continue to reshape global energy markets, supporting record profits for major oil producers while extending higher fuel costs for consumers and businesses around the world.
This report is based on reporting by The Associated Press.
