Business & Finance

U.S. Oil Companies Earn $130 Billion in Profits Amid Iran Conflict, While Consumers Face Rising Energy Costs

By Federica Marsi

U.S. oil and gas firms have made more than $130 billion in profits during the six months from April to September, according to a New York Times analysis of 51 large U.S. companies. The same period in 2025, when oil prices were lower before the U.S.–Israel war on Iran, saw combined earnings of less than $47 billion. The gains come as consumers pay higher prices for fuel. Brown University’s Climate Solutions Lab estimates that Americans have spent an extra $150 billion on petrol and diesel since the war began on February 28, an average of more than $1,150 per household.

Representative Jim McGovern, a Democrat, criticized the situation on X, saying, “We’re not making a ‘freaking fortune,’ we’re PAYING a ‘freaking fortune.’”

Naser al‑Tamimi, a fellow at the Institute for International Political Studies in Milan, explained that U.S. energy companies benefit from higher oil prices and tighter fuel supplies. He noted that damage to Middle Eastern and Russian refineries, disrupted shipments through the Strait of Hormuz, and sanctions‑related trade frictions have intensified shortages, while U.S. facilities remain relatively secure and can access discounted crude.

ExxonMobil and Chevron reported quarterly profits of between $10 billion and $15 billion. Valero Energy’s third‑quarter profit rose more than sixfold to $6.83 billion, and Phillips 66 announced its highest quarterly profit on record, with net income of $5.62 billion compared with $133 million a year earlier.

Geoffrey Miller, a geopolitical analyst, said the U.S.–Israel war with Iran created the largest supply‑side shock to global oil and refined products markets in years, creating a risk premium that U.S. operators are well positioned to monetize. In contrast, Gulf producers face higher costs, risks, and physical damage, making it harder for them to benefit from higher prices.

Iran retaliated against the U.S.–Israeli attack by launching missiles and drones at Gulf Cooperation Council (GCC) states. The Armed Conflict Location and Event Data (ACLED) monitor recorded at least 172 attacks on non‑military infrastructure across the six GCC member states. Iran also blocked most vessels through the Strait of Hormuz. In response, the U.S. imposed a naval blockade on Iranian oil and gas.

Oil prices briefly fell in the summer after a memorandum of understanding was signed in June, but rose again when talks broke down. A recent escalation between Saudi Arabia and the Houthis has further strained the Bab al‑Mandeb strait, a key route for Saudi oil exports.

Miller warned that while windfall profits strengthen oil company balance sheets and shareholder returns in the short term, high oil prices could harm economic growth and accelerate a transition to renewable energy in the long term.

Florence Schmit, senior energy strategist at Rabobank, said prices of key energy products are likely to remain high given the uncertainty about the duration of the Iran conflict. She added that consumers will continue to feel price pressure unless governments intervene.

The U.S.‑led war on Iran has increased costs for oil, transport fuels, gas, electricity, and food. The World Bank Group’s latest Commodity Markets Outlook projects commodity prices to rise 23 percent this year, with disrupted grain shipments and the El Niño weather phenomenon also threatening harvests and food affordability. The United Nations’ Food and Agriculture Organization noted that world food commodity prices rose 1.5 percent in September, after reaching their highest level since late 2022 in August.

President Donald Trump has blamed high global fuel prices on Ukraine and urged Ukrainian President Volodymyr Zelenskyy to halt strikes on Russian refineries, even as Moscow continued attacks on Ukrainian energy infrastructure. He has argued that a deal with Russia reversing sanctions could lower diesel prices.

In the Gulf, analysts say higher oil prices benefit exporters that can maintain shipments, but prolonged insecurity will continue to threaten supply reliability and investment. Al‑Tamimi added that Gulf producers face years of reconstruction and pressure to diversify export routes, and that a diplomatic settlement could ease prices, whereas renewed U.S.–Israeli attacks on Iran risk triggering another regional war and further disrupting Hormuz.