Middle East Conflict Raises Oil Prices, Boosts Exxon and Chevron Second-Quarter 2026 Earnings

Exxon Mobil and Chevron reported on July 31 that second-quarter 2026 profit rose sharply, driven by higher international oil prices amid the Middle East conflict.

Exxon posted quarterly profit of $14.525 billion, up sharply from $4.183 billion in the first quarter and $7.082 billion in the same period of 2025. The company said that while the Middle East conflict hurt its upstream operations in the region, upstream production excluding the Middle East was the highest in more than two decades. Second-quarter total production was 4.5 million barrels of oil equivalent per day, down from 4.6 million in the first quarter. Output from the Permian Basin in the United States exceeded 1.8 million barrels per day, a record. The conflict caused a loss of roughly 450,000 barrels of oil equivalent per day from its Qatar LNG operations, with some capacity still offline. Diesel production reached its highest level since at least 2014.

Chevron posted profit of $12.072 billion, sharply higher than $2.21 billion in the first quarter and $2.49 billion a year earlier. The company said the year-on-year increase reflected reliable operations, higher commodity prices, improved refining product margins and higher sales volumes. Global production was 4 million barrels of oil equivalent per day, up from 3.85 million in the first quarter, and US output set a quarterly record, driven mainly by the Permian Basin and the Gulf of Mexico.

International oil prices rose sharply in the second quarter. Brent crude averaged $96.68 a barrel, up 23% from the first quarter, while US crude futures averaged $92.45 a barrel, up 27% quarter on quarter. The Middle East conflict restricted shipping through the Strait of Hormuz, reducing global fuel supply and pushing refining margins to record highs. Both companies benefited from the market conditions.

Sales in the second quarter totaled $116.017 billion at Exxon, up 42% year on year, and $70.055 billion at Chevron, up 56%. Exxon said its structural cost-cutting measures had generated cumulative savings of $16.3 billion by the end of the second quarter. Chevron said it still plans to increase production by 7% to 10% in 2026 and that its Venezuela crude output had risen 15% over the past six months to about 280,000 barrels per day. After the results were released, Exxon shares fell 1.4%, while Chevron shares rose 2.2%.