What happened
Major oil companies have earned $130 billion in profits during the Iran war, nearly triple their earnings from the same period last year. This significant increase in profits has occurred as American motorists face soaring gasoline and diesel prices.
The world's biggest oil companies, including ExxonMobil, Chevron, BP, Shell, and TotalEnergies, have collectively reported $56.3 billion in adjusted third-quarter net income. Their refining operations have been particularly lucrative, with ExxonMobil's refining business generating a record $9.05 billion in third-quarter profits.
The Iran war has disrupted global energy markets, severely impacting shipments through the Strait of Hormuz, a critical shipping corridor. Although oil shipments have since rebounded, motorists have yet to see any meaningful relief at the pump. The national average for regular gasoline stands at $4.20 per gallon, up from $2.98 before the conflict began.
The conflict has also led to a shortage of fuel-making facilities worldwide, allowing companies with refining capacity to command higher margins. International oil prices have climbed approximately 60 percent since the US and Israel launched strikes against Iran.
The war has cost the average American household $2,000 since it began, with diesel prices jumping from $3.68 to $6.32 per gallon, an increase of $2.64, or roughly 72 percent. The high prices have sparked concerns among voters, with the issue being one of the top concerns in the midterm elections.
