Iran conflict and Strait of Hormuz disruption lift Big Oil profits as US gasoline prices rise

Major oil companies reported higher first-quarter 2026 profits as energy prices climbed amid the conflict in Iran, which has included attacks on fossil-fuel facilities and disruption to shipping through the Strait of Hormuz.

ConocoPhillips reported $2.3 billion in profit for the first three months of 2026, up 84% from before the conflict began. Valero Energy posted $1.2 billion in quarterly profit, beating estimates. Liberty Energy reported $10 million in quarterly earnings, up 32% from before the conflict.

BP said its performance was “exceptional” and more than doubled profits in the first quarter, while Shell reported first-quarter profit that topped expectations. Chevron and ExxonMobil reported profit declines in the first quarter, but analysts’ consensus estimates cited in the report indicate ExxonMobil’s second-quarter earnings could more than double from a year earlier and Chevron’s profits are expected to increase by 56%.

The gains for the industry have come as gasoline prices rose for consumers. The US average gasoline price reached $4.52 per gallon, the highest since July 2022.

Advocates and analysts quoted in the report said the jump in oil-company earnings could increase the sector’s resources for political lobbying and potentially slow the clean-energy transition.