Profit study: Oil companies make billions from Iran war

Six of the world's largest fossil fuel companies, BP, Chevron, Eni, Exxon Mobil, Shell, and Total Energies, are projected to double their net profits during the second quarter of 2026 compared to the first quarter of the same year, according to a study released Tuesday by the international development organization Oxfam. The research estimates these firms will generate $46 billion in combined net profits during Q2 2026, with some companies expected to see their earnings surge dramatically. Chevron, for instance, could increase its quarterly profit to $1,200 per second, quadrupling its previous rate. These figures come amid rising oil and gas prices driven by regional conflicts and geopolitical tensions. The study highlights how the ongoing conflict involving the United States, Israel, and Iran has disrupted global energy markets. Temporary closures of the Strait of Hormuz have contributed to supply shortages, pushing up crude oil and gas prices to record levels. Total Energies, a French firm, already announced a 67 percent rise in its net profit for Q2 2026, reaching $6 billion. Meanwhile, Norway-based Equinor, though smaller than some of its counterparts, reported a staggering 93 percent increase in its second-quarter net profit, amounting to $3.23 billion. Oxfam based its findings on projections from the analysis platform Standard & Poor’s Capital IQ. The organization anticipates that the six major oil and gas corporations will collectively earn $147 billion in profits in 2026, surpassing the total made over the preceding 21 months, from April 2024 through December 2025. This sharp increase reflects both higher commodity prices and continued demand for fossil fuels despite growing awareness of climate change. The environmental impact of such profits is significant. According to Oxfam, historical emissions from these five companies, BP, Chevron, Exxon Mobil, Shell, and Total Energies, have been responsible for one in four heatwaves recorded between 2000 and 2023. Their activities were estimated to have caused around $60 billion in climate-related damages last year alone. This assessment draws upon a study published in the journal Nature. Oxfam has long called for a windfall tax on companies benefiting disproportionately from crises. The group suggests imposing taxes of at least 50 percent on corporate profits exceeding a 10 percent return, with even stricter measures for the fossil fuel sector, where the threshold would be set at 3 percent. Such a tax, they argue, could raise up to $400 billion globally within the first year. German Green Party officials echoed this call, advocating for a nationwide windfall tax applicable across all industries. However, their proposal faced rejection in July by the German parliament’s finance committee, which voted against it with support from the Christian Democratic Union, Social Democrats, and Alternative for Germany parties. The Greens defined a windfall as a domestic profit increase of at least 15 percent compared to a seven-year period, proposing a minimum tax rate of 33 percent. Energy policy spokesperson Michael Kellner stated that the “outrageous profits” of oil companies necessitate such a measure, adding that the additional revenue should be used to reduce electricity taxes. The debate over windfall taxation comes at a time when energy prices remain volatile. In 2022, European energy costs surged due to the Ukraine war, prompting discussions about temporary measures to manage the financial burden on consumers. While the situation has eased somewhat following recent U.S. military actions targeting Iran, the underlying issues of energy security and climate responsibility persist. Oxfam’s report underscores the complex interplay between economic gain and environmental harm. As fossil fuel companies continue to benefit from geopolitical instability, calls for regulatory intervention grow louder. The challenge lies in balancing immediate economic concerns with long-term sustainability goals. With the global community increasingly aware of the climate crisis, the pressure on policymakers to act decisively is mounting.