United States oil companies have earned more than $130bn in profits during the war on Iran, even as consumers pay much higher prices for key commodities, amid fears that US President Donald Trump may renew fighting after midterm elections.
The estimate, released by The New York Times, is a conservative evaluation based on the performance of 51 large US oil and gas companies in the six months from April through September. By contrast, in the same period in 2025 – when the prices of oil were lower prior to the launch of the US-Israel war on Iran – they collectively earned less than $47bn.
Recommended Stories
list of 3 itemsend of list
But the gains come as burgeoning living costs are crushing consumers. Americans have spent an extra $150bn on petrol and diesel since the war on Iran began on February 28, according to an analysis by Brown University’s Climate Solutions Lab, which amounts to more than $1,150 per household.
The disparity has fuelled a political debate over who gains and who pays the price for the war. Responding to Trump, Democratic Representative Jim McGovern wrote on X: “We’re not making a ‘freaking fortune,’ we’re PAYING a ‘freaking fortune’.”
US Big Oil in position to profit where others lose
Naser al-Tamimi, a fellow at the Institute for International Political Studies (ISPI) in Milan, Italy, said US energy companies have benefitted from the war in different ways. “Crude producers gain from higher oil prices, while refiners capture exceptional margins as diesel and other fuel supplies tighten,” he said.
Additionally, “damage to Middle Eastern and Russian refineries, disrupted Strait of Hormuz shipments, and sanctions-related trade frictions have intensified shortages”, while “relatively secure US facilities and access to discounted crude strengthen these gains”.
ExxonMobil and Chevron, the biggest US oil companies, on Friday reported profits of between $10bn and $15bn. While the gains are considerable, The New York Times found they generally remained below 2022 levels, when Russia’s invasion of Ukraine caused oil prices to soar to roughly $100 a barrel and raised natural gas prices, compared with the current average of $90 from April through September.
American refining companies also reaped greater profits as global fuel supplies tightened and inventories depleted due to heavy damage to infrastructure in the Middle East and Russia. Valero Energy’s third-quarter profit increased more than sixfold, reaching $6.83bn. Phillips 66 announced its highest quarterly profit on record, with net income jumping to $5.62bn from $133m a year earlier.
Geoffrey Miller, geopolitical analyst and editor of the Gulf States Insights newsletter, said the US-Israel war with Iran “created the largest supply-side shock to global oil and refined products markets in years”.
Miller added that the war “created a risk premium that US-based operators are structurally well placed to monetise”. By contrast, Gulf producers were “hit hard by both higher costs and risks, along with physical damage, which makes their ability to benefit from the higher prices much more difficult”.
Tehran retaliated against the US-Israeli attack by launching missiles and drones at the Gulf Cooperation Council (GCC). The Armed Conflict Location and Event Data (ACLED), a US-registered independent conflict monitor, found Iran and Iran-backed groups in the region have carried out at least 172 attacks on nonmilitary infrastructure across the six GCC member states. Despite claims by Iranian officials that they were targeting US military facilities, they also hit energy infrastructure.
Iran also effectively blocked passage of most vessels through the Strait of Hormuz. In retaliation, the US imposed a naval blockade on Iranian oil and gas – the tit-for-tat steps raising the risks of transporting energy out of the crucial passageway.
Continued pressure over cost of living
Analysts warned of continued volatility until a durable political settlement between the US and Iran is reached. Oil prices dropped briefly in the summer after a memorandum of understanding was signed in June, but prices quickly soared again when talks broke down.
A more recent escalation in fighting between Saudi Arabia and the Houthis has further compounded the crisis: the Bab al-Mandeb strait that connects the Red Sea to the Gulf of Aden, which Saudi Arabia uses to export oil, is now also a theatre of war.
“In the short term, windfall profits will only strengthen oil company balance sheets and shareholder returns,” Miller said. “However, the big profits come with a major caveat. That’s because over the longer term, high oil prices risk harming economic growth prospects and could even contribute towards the outbreak of a recession, which would in turn be likely to lead to reduced demand for oil” and accelerate the transition to renewable energy.
Florence Schmit, senior energy strategist at Rabobank’s global economics and markets team in London, said it was likely that the prices of key energy products would remain high given the uncertainty about the duration of the war in Iran.
“Prices in all markets that have an exposure to this global supply shock – which includes the US – will face high prices also next year, and consumers will continue to feel this price pressure unless governments step in,” Schmit told Al Jazeera.
The US-led war on Iran has raised costs for oil, transport fuels, gas, electricity and food. According to the World Bank Group’s latest Commodity Markets Outlook, commodity prices are set to rise 23 percent this year, as disrupted grain shipments and the El Nino weather phenomenon also threaten harvests and food affordability.
The United Nations’ Food and Agriculture Organization said on October 2 that world food commodity prices rose a further 1.5 percent in September, after reaching their highest level since late 2022 in August, amid adverse weather and trade disruptions in the Black Sea and Strait of Hormuz.
Trump has sought to blame high global fuel prices on Ukraine and pressured Ukrainian President Volodymyr Zelenskyy to halt strikes on Russian refineries, even as Moscow continued to wage attacks on Ukrainian energy infrastructure. The US president has argued that a deal with Russia reversing years of sanctions would help lower diesel prices.
In the Gulf, analysts said higher oil prices will benefit exporters that can maintain shipments, but prolonged insecurity will continue to threaten supply reliability and investment.
“Gulf producers face years of reconstruction and pressure to diversify export routes,” ISPI’s al-Tamimi said. “A diplomatic settlement could ease prices, whereas renewed US-Israeli attacks on Iran risk triggering another regional war, further disrupting Hormuz and prolonging shortages.”
