US-Israel war on Iran creates oil profit surge, taxpayer burden

August 31, 2026 at 05:01 PM2 min

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Six months into the US-Israel war on Iran, oil companies report record profits while US taxpayers face a $37.5bn war bill. ExxonMobil posted $14.5bn in second-quarter profit, its best in four years, and Chevron $12bn, its highest in six years. The Strait of Hormuz closure has driven energy prices up, benefiting producers but straining public finances.

Key Facts

ExxonMobil reported $14.5bn profit in the second quarter of 2026, its best quarterly earnings in four years.
Chevron posted a $12bn profit for the same period, the highest in six years.
Saudi Aramco netted $33.4bn profit in the most recent quarter, a one-third increase from 2025.
US Defense Secretary Pete Hegseth estimated the war cost at $37.5bn as of late July 2026.
ADNOC reported a 52 percent drop in second-quarter profit to $665m due to the Strait of Hormuz closure.

Oil Company Windfalls

The closure of the Strait of Hormuz and Iranian strikes on Gulf energy infrastructure sent oil prices soaring since the war began. ExxonMobil, the largest US oil company, reported $14.5bn profit in the second quarter, its best quarterly earnings in four years. Chevron, the second-largest US producer, posted a $12bn profit for the same period, the highest in six years. France's TotalEnergies earned $6bn in the April-June period, up from $3.6bn a year earlier. British energy giants Shell and BP more than doubled their earnings year-on-year, with quarterly profits of $9.8bn and $5.73bn respectively.

Regional Producer Divergence

Saudi Aramco netted $33.4bn profit in the most recent quarter, a one-third increase from 2025. In August, Abu Dhabi National Oil Company (ADNOC) reported a 52 percent drop in second-quarter profit to $665m from $1.39bn a year earlier. ADNOC said sales were hit by the closure of the Strait of Hormuz, though the result beat its expected range of $400m to $600m. Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said European energy companies did better than US peers because they trade oil, boosting revenues.

US Taxpayer Costs

In late July, US Defense Secretary Pete Hegseth provided Congress an estimate putting the war cost at $37.5bn up to that point. Hegseth did not provide a breakdown, but various observers suggested the true cost is almost certainly far higher.