US Gulf Coast refiners see profit surges amid Iran conflict

Major US oil companies and refiners reported significant profit increases during the third quarter of 2026, driven by rising fuel prices and soaring tanker rates linked to the conflict in Iran. Security threats near the Strait of Hormuz have disrupted maritime traffic, leading to higher war-risk insurance premiums and longer shipping routes.

These disruptions have provided a competitive advantage to US Gulf Coast refiners. While Asian competitors face sharply increased freight and insurance costs to import heavy crude, US refiners can access discounted heavy crude from closer sources, such as Canada and Venezuela. For example, freight costs for shipping crude from the US Gulf Coast to Asia have reportedly jumped to $30-$35 per barrel, up from approximately $5 a year prior.

Financial reports highlight the scale of these windfalls: Chevron’s quarterly profits increased by nearly 300% compared to the previous year, while Exxon Mobil’s net income doubled to $15.3 billion. Phillips 66 reported a fourteen-fold increase in refining income, and Valero Energy earned more in the third quarter than in 2024 and 2025 combined. Analysts suggest these companies are adopting a disciplined approach to these profits, focusing on debt reduction and high-return projects rather than aggressive expansion.