American oil and gas giants, such as Exxon Mobil and Chevron, have seen massive profits in recent months due to the conflict between the US and Iran, which has driven energy prices higher. The conflict, now in its sixth month, has halted most shipping through the Strait of Hormuz, a narrow waterway that previously served as a delivery route for a fifth of the world’s oil and natural gas.

Record Profits for Exxon and Chevron

Exxon Mobil reported that its second-quarter profits doubled to $14.53 billion, boosted by record diesel production. Chevron nearly quadrupled its profits to $12.07 billion, with revenue jumping 56% to $70.06 billion. Six of Europe’s largest oil companies posted combined first-quarter profits of $22 billion, more than 40% higher than last year.

The global refining market is under-supplied, and with countries such as Russia and China no longer exporting, companies like Exxon and Chevron have to pick up the slack. As a result, refineries that have ample oil to work with, including those in the US, are turning high profits, particularly when they make jet fuel and diesel.

Lawmakers Propose Taxing Major Oil Producers

Democrats in Congress have introduced bills to tax major oil producers for profits they show from 2026 onward, with the tax proceeds to be redistributed to consumers. The average price for a gallon of regular gasoline in the US has reached $4.11, about $1 more than at this time last year.

Original reporting: Texarkana Gazette — read the source article.