Oil Giants and Banks Post Record Profits Amid US-Israel War in Iran

Households worldwide tally expenses from the US-Israel war in Iran, but some companies report strong profits.

The conflict's uncertainty and Iran's closure of the Strait of Hormuz have raised living costs and strained budgets of firms, families and governments. About a fifth of global oil and gas passes through the strait, but shipments stopped at the end of February. Energy prices have swung wildly since then, benefiting major oil and gas companies.

European oil giants with trading operations profited most from the price shifts. BP's profits more than doubled to $3.2 billion for the first three months of the year, thanks to an exceptional performance in its trading division. TotalEnergies saw profits rise nearly a third to $5.4 billion in the first quarter of 2026, fueled by oil and energy market volatility.

US companies ExxonMobil and Chevron posted lower earnings than last year due to Middle East supply disruptions. Both exceeded analysts' forecasts and anticipate further profit growth as oil prices remain well above pre-war levels.

Major banks also gained. JP Morgan's trading arm generated a record $11.6 billion in revenue in the first quarter of 2026, contributing to the bank's second-highest quarterly profit ever. Profits rose substantially across the Big Six banks, which include Bank of America, Morgan Stanley, Citigroup, Goldman Sachs, Wells Fargo and JP Morgan.

Wall Street lenders benefited from increased trading demand. Investors shifted from riskier stocks and bonds to safer assets and sought to profit from market swings. JP Morgan's Ian Streeter said, "The volatility unleashed by the war has led to a surge in trading, as some investors sold stocks on fears of escalation, while others bought the dip, helping to fuel a recovery rally."

Defense firms stand out as immediate winners, said Emily Sawicz, senior analyst at RSM UK. "The conflict has reinforced gaps in air defence capability, accelerating investment in missile defence, counter drone systems and military hardware across Europe and the US," she told the BBC. Governments must also restock weapons, lifting demand.

BAE Systems, maker of F35 fighter jet components, expects strong sales and profit growth this year. It pointed to rising global security threats that increase government defense spending and create a supportive environment. Lockheed Martin, Boeing and Northrop Grumman each reported record order backlogs at the end of the first quarter of 2026.

Defense shares, up sharply in recent years, have declined since mid-March on concerns of overvaluation.