The war involving Iran has disrupted oil supplies and shipping through the Strait of Hormuz, contributing to a sharp rise in crude-oil prices and increased volatility in global energy markets. Brent crude averaged about $103.85 a barrel in the second quarter, compared with $67.88 a year earlier. Oil prices have remained highly sensitive to developments surrounding the conflict and negotiations over reopening the Strait of Hormuz.

The disruption has also boosted earnings at major energy companies. BP reported second-quarter profit of $5.73 billion, more than double its result a year earlier and its highest quarterly profit since 2022. Other major oil companies have likewise benefited from higher prices and increased trading opportunities created by market volatility.

The combination of higher fuel costs for consumers and increased profits for energy companies has prompted calls for windfall taxes. In the United States, President Donald Trump has also criticized ExxonMobil and Chevron over their profits and urged them to reduce fuel prices.

Politics »  International  Economy & Money  Conflicts & War  Energy

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