ExxonMobil and Chevron Post Record Profits Amid Iran War Oil Spike

Oil prices have remained above $100 a barrel for months due to the U.S. war with Iran. On Friday, ExxonMobil and Chevron reported profits that far exceeded analyst expectations.

ExxonMobil’s profit doubled compared to the same period last year. Chevron’s earnings surged more than 180% from a year earlier. As part of the financial results, Exxon announced an increase in the dividend it pays to investors. BP also reported overnight that its profit reached an 18-year high.

Brent oil closed trading just under $118 per barrel on Friday. The price has approached its wartime peak of $126, a level first reached after the United States and Israel launched the conflict in late February. Since the start of the year, Exxon shares have risen 52%, while Chevron shares have gained 50%.

Consumers face the direct costs of these global energy shifts. The average price of regular gasoline has soared 40% since the war began. This price increase stands in contrast to President Donald Trump’s 2024 campaign pledge to cut energy costs in half and bring gasoline below $2 a gallon. As of Friday, the average gas price is more than double that target.

ExxonMobil CEO Darren Woods told CNBC that global disruption is driving product prices to current levels. He noted that the closure of the Strait of Hormuz forced shipping onto new routes. Additionally, he said that about half of Russia’s refinery capacity has been lost due to Ukrainian bombing. Woods identified diesel as the key crunch point for economic growth, noting that the average nationwide price for diesel fuel has risen 78% since the start of the year.

The administration has attempted to mitigate the impact on the economy. Trump signed an order allowing more widespread use of off-road dyed diesel and pressured European allies to release more diesel reserves. He also announced a deal with Vladimir Putin for Russian diesel supplies. Last week, the president announced $150 million in Defense Production Act funding to expand petroleum production, storage, and logistics at refineries across the country.

Both ExxonMobil and Chevron said they are running refineries at maximum output to meet demand. Woods stated that his company’s refineries are at record levels of utilization. He added that North America is producing record volumes of diesel as the company tries to drive more product into the marketplace to meet demand and drive costs down.