Oil majors profit surge amid Gulf conflict

In late July 2026 two leading European oil companies reported unusually high quarterly earnings linked to the ongoing war in the Persian Gulf. TotalEnergies announced its strongest results in nearly three years, with adjusted net income of $6 billion and a 67 % rise in earnings, driven by higher oil prices and strong refining margins despite weaker LNG performance. The CEO warned that the Strait of Hormuz could become a chronic risk and disclosed an exit from the Arctic LNG‑2 project. The price shock also coincided with a sharp rise in European electric‑vehicle sales, which reached 25 % of new registrations.

Two days later Shell disclosed an adjusted profit of $9.8 billion, more than double the prior‑year figure and the highest since early 2023. The surge stemmed from elevated gasoline and diesel prices in Europe (over €2 per litre) combined with lower crude prices, boosting refinery spreads. Shell returned $3 billion to shareholders and noted a 30 % drop in Qatar gas output. An Oxfam study cited the same conflict‑driven price spikes, estimating that six major oil and gas firms—including Shell, TotalEnergies, BP, Chevron, Exxon Mobil and Eni—would collectively earn $46 billion in the quarter, raising concerns about climate impacts.