Saudi Aramco reported a 33% jump in second-quarter profits as the ongoing Iran war squeezed oil supply and pushed fossil fuel prices higher, mirroring record earnings across the oil industry.
Key facts
- Saudi Aramco's second-quarter profits jumped 33%, according to CNBC.
- BP's quarterly profits more than doubled to $5.73bn in the three months to the end of June.
- BP's profits rose $2.5bn from the previous quarter, its highest since the first year of Russia's war on Ukraine.
- Shell posted its second highest quarterly earnings on record.
- Al Jazeera reports the critical Strait of Hormuz remains closed.
Saudi Aramco, the world’s largest oil producer, reported a 33% jump in second-quarter profits as the Iran war squeezed global oil supply, according to CNBC. The results place the state-backed energy giant among a wave of oil companies posting sharply higher earnings driven by rising fossil fuel prices.
CNBC reported that the surge came as oil supermajors booked blowout quarterly profits, benefitting from higher fossil fuel prices amid the conflict. The disruption to energy exports from the Gulf has tightened supply and pushed prices upward across the sector.
The trend extended well beyond Saudi Arabia. According to the Guardian, BP reported its highest quarterly profits since the first year of Russia’s war on Ukraine, with earnings more than doubling to $5.73bn (£4.27bn) in the three months to the end of June. That figure was up $2.5bn from the previous quarter.
The Guardian attributed BP’s results to rising oil and gas prices caused by the Middle East crisis, noting that the ongoing conflict continued to disrupt energy exports from the Gulf. Rival Shell also posted its second highest quarterly earnings on record, the paper said.
Al Jazeera reported that the record profits across Big Oil have come as the critical Strait of Hormuz remains closed. The strait is a key chokepoint for global energy shipments, and its closure has intensified pressure on supply.
Taken together, the earnings reports underscore how the Iran war has reshaped energy markets, delivering astronomical profits to major producers even as the underlying conflict disrupts exports from one of the world’s most important oil regions.
Why it matters
Higher oil company profits are a direct reflection of rising fossil fuel prices, which feed through to fuel and energy costs for households and businesses. With the Strait of Hormuz closed and Gulf exports disrupted, the earnings signal continued market pressure tied to the Iran war.
Frequently asked questions
How much did Saudi Aramco's profits rise?
According to CNBC, Saudi Aramco's second-quarter profits jumped 33%, driven by higher fossil fuel prices amid the Iran war.
How did BP and Shell perform?
The Guardian reported BP's quarterly profits more than doubled to $5.73bn in the three months to the end of June, up $2.5bn from the prior quarter, while Shell posted its second highest quarterly earnings on record.
Why are oil prices rising?
The sources attribute higher oil and gas prices to disruption of Gulf energy exports caused by the Iran war, with Al Jazeera noting the critical Strait of Hormuz remains closed.