Oil prices have soared in recent months as a result of the almost complete closure of the Strait of Hormuz, a key trade corridor connecting Asia and Europe. High fossil fuel prices have helped to drive up the profits of oil and gas companies around the globe, particularly in the United States and Europe. As a few companies boost production to fill the gap, some oil majors have seen record earnings in the first half of the year, a trend that is expected to continue for as long as Hormuz trade remains restricted.
Eight of the largest oil firms achieved combined profits of over $90 billion in the three months from April to June, following the U.S.-Israeli attack on Iran and the subsequent war. Iran's decision to close the Strait of Hormuz, the waterway between Oman and Iran that connects the Persian Gulf with the Gulf of Oman and the Arabian Sea, has led to the biggest disruption of fossil fuel supplies in the market's history. As a few oil majors from the United States, Europe, and the Middle East step in to fill the gap and oil prices are pushed higher, a few companies have come out on top.
The phenomenon has also demonstrated that the world remains overly dependent on fossil fuels, with countries willing to pay a premium to secure their oil and gas supplies in the face of major global shortages. Environmentalists are concerned about what this reliance means for climate change, as greenhouse emissions remain high. The lack of energy diversification and the heavy dependence on fossil fuels also poses a threat to energy security for many countries.
The eight companies assessed – Aramco, BP, Shell, Equinor, TotalEnergies, Eni, Chevron, and ExxonMobil – have almost doubled their combined profits, from just below $50 billion in the second quarter of 2025. The increase in oil prices has driven up consumer energy bills worldwide, while oil companies continue to profit. This has reignited the discussion around windfall tax, as governments call for oil companies to pay higher levies to subsidise energy bills and environmentalists believe extra taxes could help pay to address the environmental damage caused by oil operations.
The Brent Benchmark put oil prices at around $68 a barrel at the end of February, rising to highs of nearly $100 a barrel in May. Saudi Arabia's Aramco benefited the most from the price increase over the spring, reporting a 34 per cent rise in its quarterly net income, at over $33 billion. Aramco saw high profits even following damage to its infrastructure by drone and missile strikes from Iranian and Houthi forces.
The company's record oil sales meant that it was responsible for more carbon emissions than any company in history, according to the database Carbon Majors. British oil major BP reported a second-quarter profit of $5.73 billion, almost double that of the same period last year and higher than forecasts predicted. BP saw its highest quarterly net profit since the third quarter of 2022, and second-quarter profits across all units surpassed expectations.
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