The recent developments in the war in Iran, which appeared last month to be winding down but have now reignited, have led to rising gas prices. And this has led to big profits for oil companies.
According to Bloomberg News’ Energy Daily newsletter, both oil trading and refining are “booming,” and the latest example is a blockbuster earnings report from Shell, the largest energy company in Europe.
The 354th Fighter Wing conducts a 75-fighter jet formation at Eielson Air Force Base, Alaska, Aug. 12, 2022, in honor of the U.S. Air Force’s 75th Anniversary. This capabilities demonstration included F-35A Lightning II, F-16 Fighting Falcon and F-22 Raptor aircraft from across Pacific Air Forces. (U.S. Air Force photo by Senior Airman Gary Hilton)
Afterburners are lit as an F-22 Raptor performs an aerial demonstration at the New York Air Show at Montgomery, New York, Aug. 23, 2025. The rapid change in angle of attack causes visible vapor to form around the aircraft, giving spectators a clear view of the jet’s aerodynamic performance. This demonstration highlights the unique thrust-vectoring capabilities of the F-22, allowing it to achieve extreme agility unmatched by other fighter aircraft. (U.S. Air Force photo by Staff Sgt. Lauren Cobin)
CNBC reported that Shell has posted its strongest quarterly profit in four years.
Shell’s adjusted earnings of $9.84 billion beat out analyst expectations of $8.79 billion. The company also reported cash flow from operations of $21.4 billion.
The Energy Daily Newsletter noted that Shell more than doubled its quarterly profit compared with the same quarter the year before, even though gas production fell by about a third.
This was offset, however, by record refinery utilization and strong trading.
It was Shell’s best quarter since the second quarter of 2022, when energy prices spiked after the initial Russian invasion of Ukraine.
The British oil giant benefited from rising oil and gas prices resulting from instability in the Middle East. And that quarter ended at the end of June, so it did not include the price spikes brought about by the renewed hostilities of late.
Shell CEO Wael Sawan told CNBC this week that “volatility is the new normal,” and that’s been a goal of the oil company to “thrive through volatility.”
Not Only Shell
The Energy Daily report also noted that TotalEnergies SE, Eni SpA, and Glencore Plc have all recently reported positive financial news.
And the strong performance, Energy Daily added, isn’t just a matter of higher energy prices. Fuel has moved through unfamiliar trade routes, regional price gaps have widened, and supply has tightened for diesel and jet fuel.
The result has been “lucrative opportunities for companies able to source, transport and process energy across multiple markets,” the Bloomberg newsletter said.
The Washington Post also reported Thursday about the trend of rising oil company profits, including Shell’s blockbuster quarter.
Overall, it’s been a big year for the oil industry. In the first quarter of 2026, a Fast Company analysis stated, the six largest oil companies in the world (BP, Chevron, Eni, ExxonMobil, Shell, and TotalEnergies) posted a combined net income of $23 billion, a figure that is expected to double for the second quarter, with those companies seen as combining for a projected annual profit of $147 billion.
U.S. Giants Are Next
The Washington Post reported that American oil giants ExxonMobil and Chevron are both scheduled to announce their quarterly earnings on Friday, and that both are “expected to approach company records.” Marathon Petroleum and ConocoPhillips announced their earnings the first week of August.
The newspaper added that, with the war expected to continue indefinitely, those big profits are a decent bet to continue through the current quarter as well.
CNBC’s Brian Sullivan, in his Power Insider newsletter, agreed that those four oil companies are expected to post blockbuster quarterly earnings- so huge, in fact, that those anticipated results could attract “very negative political attention.”
An Oil Profit Tax?
That political attention has already come, in the form of a new push in Congress to impose a windfall profits tax on oil companies, something that the United Kingdom and European Union actually imposed after the oil spike that followed the Russian invasion of Ukraine.
The Big Oil Windfall Profits Tax Act, which has been introduced in various forms in the past, would apply only to large oil companies that produce or import 300,000 barrels of oil per day, and would therefore not apply to 70 percent of domestic oil production, according to a fact sheet about the bill posted by Sen. Sheldon Whitehouse (D-RI), a sponsor of it.
For those to whom it applies, a per-barrel tax would be levied on 50 percent of the difference between the current per-barrel price and the previous year’s price. The difference would be refunded to customers as a rebate.
The oil industry, perhaps not surprisingly, does not support the legislation, a spokesman for the American Petroleum Institute made clear.
About the Author: Stephen Silver
Stephen Silver is an award-winning journalist, essayist, and film critic, and contributor to the Philadelphia Inquirer, the Jewish Telegraphic Agency, Broad Street Review, and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. For over a decade, Stephen has authored thousands of articles that focus on politics, national security, technology, and the economy. Follow him on X (formerly Twitter) at @StephenSilver, and subscribe to his Substack newsletter.
