By Karim Hammam
ExxonMobil and Chevron reported sharply higher profits on Friday, driven by oil prices that have remained above $100 per barrel since the U.S. war with Iran began in late February.
Earnings double amid supply disruptions
ExxonMobil's profit doubled from the same period last year, while Chevron's earnings surged more than 180%. Both companies benefited from Brent crude trading near $118 a barrel, approaching the $126 peak reached earlier in the conflict. Exxon also announced an increased dividend for shareholders.
Gasoline and diesel costs strain consumers
The average price of regular gasoline has risen 40% since the war started, and diesel prices have climbed 78% nationwide this year. New York diesel futures have jumped 130%, signaling further pump increases. Exxon CEO Darren Woods said refineries are running at maximum output to meet diesel demand, which he called the key crunch point for economic growth.
Trump celebrates oil revenues despite voter pain
President Donald Trump has highlighted the windfall at recent rallies, saying the country is making "hundreds of billions of dollars" from Middle East turmoil. He acknowledged higher consumer costs but insisted the gains are unprecedented. The administration has tried to ease diesel prices through measures including releasing dyed diesel, pressing allies to tap reserves, and securing a supply deal with Russia, but prices have not meaningfully fallen.
Global refining shortage drives prices
Woods cited the closure of the Strait of Hormuz and the loss of half of Russia's refining capacity due to Ukrainian attacks as major factors tightening global supply. He said North American refineries are already at record utilization rates, limiting further output increases.
