Exxon, Chevron Seen Posting Record Q2 Profits as U.S.-Iran War Lifts Fuel Prices

According to Lianhe Zaobao citing the Financial Times, Exxon Mobil and Chevron are expected to report record profits fueled by higher crude, diesel and jet fuel prices linked to the U.S.-Iran war, with projected second-quarter net income of about USD 15 billion and USD 9.7 billion, respectively—more than double the prior quarter. FactSet forecasts Marathon Petroleum will post its highest profit since 2022, while Valero is also expected to deliver strong results.

The report said the profit surge is likely to trigger political backlash in Washington ahead of U.S. midterm elections. President Donald Trump last month accused oil companies on his social media platform of deliberately pushing up gasoline prices and directed the Justice Department to investigate potential price gouging; he also said gasoline prices should be around USD 2.25 a gallon, a level last seen in 2020. Data from the American Automobile Association showed average U.S. gasoline prices are up nearly one-quarter from a year earlier to about USD 3.8 a gallon, while diesel is up 30% to about USD 4.8 a gallon.

Senators Elizabeth Warren and Sheldon Whitehouse wrote to oil executives last month seeking documents on pricing decisions and communications with the White House. Oil prices had fallen in recent weeks on hopes of a peace deal, but rebounded to around USD 80 a barrel after the U.S. launched another military strike on Iran on July 8, the report said. The White House and Justice Department declined to comment, and the companies cited did not respond on expected earnings. Chevron CFO Eimear Bonner said in June that retail gasoline prices take time to adjust due to a lag between crude declines and pump prices.