US Oil Giants Boost Profits as War Drives Up Fuel Prices

Major US oil companies generated more than $130 billion in profits during the first six months of the Iran war, benefiting from disrupted global energy supplies even as American households faced rising gasoline and diesel costs. The earnings covered April through September 2026, according to an analysis of more than 50 US oil and gas companies reported by The Seattle Times.

The companies collectively earned less than $47 billion during the same period in 2025. The analysis excluded March, the first month of the conflict, and October, as well as pipeline operators and oilfield service providers.

ExxonMobil and Chevron recorded particularly strong third-quarter results, supported by their refining operations. Exxon's quarterly profit more than doubled, while Chevron's nearly tripled. Exxon also generated more revenue from refining than from exploration and production for the first time in at least six years, according to Fox Business.

Bloomberg data showed that ExxonMobil, Chevron, BP, Shell and TotalEnergies exceeded analysts' expectations, combining for $56.3 billion in adjusted net income. Their results represented the third-highest combined quarterly earnings on record.

American consumers have also absorbed substantial additional expenses. Brown University's Climate Solutions Lab estimated that households spent an extra $147 billion on gasoline and diesel after the United States and Israel began striking Iran on February 28, equivalent to more than $1,100 per household.

Neil Hansen, ExxonMobil's chief financial officer, acknowledged the financial pressure facing consumers while discussing the company's response to the market conditions.

"We certainly acknowledge that the higher fuel prices put pressure on families and businesses. But this is one of those situations and type of business where you can't invest your way out of these conditions overnight. The decisions that matter today were made years ago."

Hansen said in an interview that expanding production capacity could not immediately resolve the supply constraints affecting the market.

Gasoline prices remained elevated despite a slight recent decline. AAA data showed the national average for regular gasoline reached $4.20 per gallon on Friday, October 30, compared with $4.43 a month earlier and $3.03 a year earlier.

Diesel prices also reached a record national average of $6.52 per gallon on September 22, according to AAA. Higher diesel costs affect trucking operations and can eventually increase prices for groceries and other transported goods.

The September Consumer Price Index from the Bureau of Labor Statistics showed gasoline prices increased 9.1% from August and 34.2% year over year. Monthly increases had previously reached 21.2% in March, 5.4% in April and 7% in May before declining 9.7% in June and 2.9% in July. Prices subsequently increased 3.9% in August.

Eimear Bonner, Chevron's chief financial officer, said the company was retaining additional cash rather than immediately directing it toward expansion.

"The cash is going on the balance sheet. That's an asset that obviously we lean on in hard times and we strengthen in times when we see higher prices."

Refiners have benefited particularly from damage to fuel-production facilities in the Middle East and Russia. Reduced refining capacity has increased margins for operating facilities, while pipeline deliveries have helped some US refiners avoid exceptionally high shipping expenses.

Homer Bhullar, chief financial officer of Valero Energy, said the company would maintain its investment strategy despite its stronger financial performance.

"We're not going to change our approach to capital investments just because we have a lot of cash," Bhullar told Wall Street analysts last week.

Valero's third-quarter profit increased more than sixfold. Bhullar also described how the company intended to distribute accumulated excess cash to shareholders.

"Over time, all the excess cash we're accumulating will ultimately be directed toward our owners," Bhullar said.

Meanwhile, American oil producers benefited from higher market prices without facing the same operational risks as companies working directly in conflict zones. However, their profits generally remained below the levels recorded in 2022, when Russia's invasion of Ukraine drove energy prices higher. US oil averaged approximately $90 per barrel from April through September 2026, compared with around $100 during the equivalent period in 2022.

European energy companies also reported substantial gains. Shell earned $12.06 billion in third-quarter profit, more than twice its result from a year earlier, while TotalEnergies reported a profit of $8.26 billion, also more than double its previous-year level.

John Catsimatidis, chief executive of privately held United Refining, discussed how the company might use its additional earnings, including reducing debt.

"I am serious. You know why? I'm 78 years old.

If I don't buy a new airplane now, when am I going to buy it? When I'm dead?"

Many US oil companies have so far prioritized debt reduction and retaining cash rather than immediately increasing production or expanding refinery capacity. Additional third-quarter financial results from dozens of US energy companies are expected in the coming weeks.