The U.S.-Iran conflict has effectively halted most petroleum shipments through the Strait of Hormuz. This disruption pushed Brent crude prices above $100 per barrel for much of the preceding quarter.
Exxon Mobil doubled its quarterly profits to $14.53 billion. Chevron nearly quadrupled its quarterly earnings to $12.07 billion.
Oil producers and refiners are capturing a windfall from higher margins on gasoline, diesel, and jet fuel. American refineries are currently running at near-full capacity to address global shortages.
Record profits are expected to continue as long as the conflict impedes traffic through the vital strait. These developments are directly influencing investor sentiment across major energy ETFs.