Oil majors’ profits surge as Iran conflict disrupts Middle East supplies

Major oil companies, including ExxonMobil, Chevron, Shell, and TotalEnergies, have reported significant profit increases as a result of elevated crude prices. The ongoing conflict in Iran has disrupted supply routes in the Middle East, particularly affecting the Strait of Hormuz, leading to one of the largest supply disruptions in oil-market history. This disruption has reduced regional oil flows by millions of barrels per day, driving crude prices higher. The International Energy Agency (IEA) noted that Brent crude was priced around $69 per barrel in the July 2026 outlook, with WTI in the mid-$80s, indicating sustained high prices. Market participants have adjusted their expectations accordingly. The potential for crude oil to reach a new all-time high by September 30 has seen fluctuating sentiment, with the probability currently priced at 5.2% for September 30, down from 6% a day earlier. Despite the recent surge in oil company profits, market pricing suggests that participants remain cautious about the likelihood of a new high within the current timeframe. Key Takeaways Market observations suggest that the surge in oil company profits is consistent with elevated crude prices due...