Chevron and ExxonMobil reported record profits in the second quarter of 2026, driven by rising global oil prices amid ongoing supply disruptions caused by the Iran war. Chevron posted a net income of $12.1 billion, its largest quarterly profit ever, while Exxon earned $14.5 billion, more than doubling its earnings from the previous year. Both companies benefitted from increased refining margins and higher crude prices, with Brent crude hovering near $90 per barrel.
Key Details
The surge in oil prices has been attributed to a combination of factors, including reduced production in the Gulf and disruptions to tanker traffic through the Strait of Hormuz. Chevron CEO Mike Wirth noted that he does not foresee significant long-term demand destruction, stating,
Demand destruction is not obvious to me at any significant scale.
He added that uncertainties surrounding China’s oil consumption remain a critical factor in global supply dynamics.
Background
Exxon’s refining profits also saw a substantial increase, reaching $5.5 billion, as the company capitalized on the limited availability of refined products due to Middle Eastern refinery outages and reduced Russian capacity. The combined earnings of the two companies reached $26.5 billion, marking a significant recovery from previous downturns in the oil market. President Donald Trump has called for an investigation into high gasoline prices, which currently average around $4.11 per gallon, significantly above pre-pandemic levels.
Related coverage: Oil Prices Surge Amid U.S.-Iran Tensions and Supply Cuts.
The rising oil prices are likely to affect consumer costs, particularly in gasoline and diesel markets, as supply disruptions continue to limit availability. Investors will watch for any regulatory actions or investigations that may impact oil exports and prices in the coming weeks.