ExxonMobil and Chevron profits quadruple amid Iran war as oil tops $112, reigniting inflation hedge debate

ExxonMobil and Chevron just posted a combined $26.6 billion in quarterly profit. Three months earlier, they were licking their wounds from production disruptions and hedging losses. ExxonMobil’s second-quarter 2026 earnings came in at $14.53 billion, a 105% increase year-on-year. Chevron nearly quadrupled its profits to $12.07 billion, reflecting a 385% jump over the same period last year. Brent crude prices peaked above $112 per barrel, driven by supply chain disruptions stemming from the ongoing US-Iran conflict. From red flags to record hauls In Q1 2026, Exxon reported a profit drop of approximately 45% to $4.2 billion. Chevron’s earnings fell about 37% to $2.2 billion. Production disruptions, shipping bottlenecks, and roughly $3.9 billion in timing effects and hedging losses at Exxon made the first quarter look bleak. Both firms still faced production losses estimated at around 6%. But when crude is trading north of $112, you can lose some barrels and still come out ahead. The price more than compensated for the volume shortfall. The windfall tax question and macro ripple effects Discussions surrounding the imposition of windfall taxes on elevated oil company earnings have alre...