The US-Israeli war against Iran, which began on 28 February 2026, had an uneven impact on the largest oil companies in the first quarter. Although the fighting affected only one month of the reporting period, its consequences were already clearly reflected in financial results: some corporations benefited from the price spike, while others suffered heavy losses due to supply disruptions and the closure of the Strait of Hormuz.
According to the International Energy Agency, oil prices have experienced "severe volatility" since the start of the conflict. Supply interruptions and the halt of tanker traffic through the Strait of Hormuz pushed Brent to nearly $120 per barrel. Market strategist Jad Hariri told Al Jazeera that the war's impact was "extremely significant": the price of West Texas Intermediate soared by more than 100%, and gas prices also rose sharply.
The war’s effect on financial reporting manifested in three main ways: higher oil and gas prices supported producers' revenues; strong trading units and inventories allowed some players to profit from volatility; and operational disruptions and asset risks hit firms with a large presence in the Persian Gulf. Hariri stressed that figures would vary greatly due to reduced exports and higher freight and insurance costs.
UK-based BP recorded underlying profit of $3.2 billion (versus $1.38 billion a year earlier) thanks to successful trading operations, while the company did not report direct asset write-downs due to the war. French TotalEnergies reported net income of $5.4 billion but acknowledged shutdowns or cuts to production in Qatar, Iraq and offshore UAE zones, amounting to about 15% of its output.
ExxonMobil earned $4.2 billion but noted losses from financial hedges and foregone revenue due to delivery problems amid Middle Eastern instability. Chevron took $2.2 billion, affected by legal provisions and currency differences, while ConocoPhillips posted $2.3 billion with production declines due to forced shutdowns in Qatar. Italy’s Eni announced adjusted net profit of €1.3 billion, assuring that its exposure to risks is minimal.
Other companies demonstrated various adaptation strategies. Spain’s Repsol set aside €1.2 billion to build inventories to ensure supply continuity, while benefiting from flexible refining and trading. PetroChina and Sinopec reported record quarterly results — ¥48.33 billion and ¥17 billion respectively — benefiting from higher prices and stable domestic demand.
Overall, winners were companies that maintained export flows or were able to replace Middle Eastern supplies from other regions. By contrast, firms with reduced export volumes faced severe pressure despite high oil prices. The first quarter of 2026 was only a preliminary snapshot of the conflict’s effects, and many large asset write-downs may still appear in future reports.
News comments
- Why does closing the Strait of Hormuz so strongly affect world oil prices, and what percentage of global supplies passes through it? - The Strait of Hormuz is a strategic "narrow corridor" through which about 20–25% of the world’s oil passes (roughly 17–20 million barrels per day). Any threat of its closure triggers market panic because there are virtually no alternative routes to transport oil from the Persian Gulf. Even rumors of a blockade can lift prices by 10–20%, while an actual closure can cause a short-term spike to record highs.
- Before the 2026 war, Iran was one of the largest oil producers — what was the role of the state National Iranian Oil Company (NIOC) in global exports and which countries were the main buyers? - NIOC (National Iranian Oil Company) controlled all exploration, production and export of oil in Iran. Before the war Iran exported about 2–2.5 million barrels per day, ranking fifth among OPEC countries. Main buyers were China (absorbing up to 60–70% of Iranian exports, often through "shadow" schemes to circumvent sanctions), as well as Syria, Turkey, India, Japan, South Korea and Southeast Asian countries. For some of them Iran was a key supplier because of discounts and preferential terms.
- Which countries, besides those mentioned in the article (for example China, Japan, India), are most dependent on oil shipments through the Strait of Hormuz, and how did the war affect their energy security? - In addition to the named countries, South Korea, Singapore, Thailand, Pakistan, as well as many African countries (including South Africa) and parts of Europe (especially Mediterranean states such as Italy, Greece, Spain) are critically dependent. For them Hormuz is virtually the only route for importing Middle Eastern oil. The 2026 war caused severe shortages and price increases for these countries: Asian economies faced factory disruptions, while Europe had to increase purchases from Africa and North America at much higher prices. Their energy security was seriously undermined, forcing urgent revisions of energy strategies, including building up strategic reserves.
- What long-term economic consequences could the war have for Iran itself, given its heavy dependence on oil revenues? - Long-term consequences are catastrophic: Iran could lose 80–90% of export revenues, as the war would destroy production and logistics infrastructure (terminals, tankers, ports). Oil revenues make up more than 60% of the budget and form the basis of foreign reserves. Their disappearance would lead to hyperinflation, widespread impoverishment, collapse of social programs and rising unemployment. Even after the war, restoring production and returning to pre-war levels could take 10–15 years due to damage and international sanctions. Without external assistance (for example from China or Russia), Iran risks becoming a "bankrupt oil state" and its government could lose legitimacy amid economic collapse.
Full version: النتائج المالية لعمالقة النفط: أسعار الخام تنعش الأرباح والحرب تضر بالإمدادات