BP and Aramco report soaring Q2 profits amid Iran war

Saudi Aramco and BP ↘ 2.90% on Tuesday reported sharply higher second-quarter profits, joining a wave of energy giants reaping windfalls from elevated oil and gas prices driven by the ongoing war in the Middle East.

Aramco posted net income of 122.6 billion Saudi riyals ($32.7 billion) for the April-to-June period, a 44 percent increase from 85 billion riyals a year earlier. Adjusted net income, which strips out exceptional items, rose 33 percent year-on-year to $33.4 billion, beating a median analyst forecast of roughly $31.2 billion. BP reported underlying replacement cost profit of $5.7 billion, more than double the $2.35 billion earned in the same quarter of 2025 and ahead of analyst expectations of $5 billion.nytimes+5

War Premium Fuels Earnings

The results reflect the upheaval in global energy markets since the United States and Israel launched military strikes against Iran on February 28. Tehran's subsequent blockade of the Strait of Hormuz — through which roughly 20 percent of the world's oil normally flows — has driven benchmark crude prices above $100 per barrel at times this year.bnnbloomberg+1

Aramco's chief executive Amin H. Nasser called the period "one of the most challenging ever in the history of Saudi Aramco," crediting the company's 1,200-kilometer East-West Pipeline for allowing crude exports to bypass the Gulf chokepoint and reach Red Sea terminals. BP's new chief executive Meg O'Neill described the quarter as "one of the most disrupted periods in the global energy market".nytimes+3

Sector-Wide Bonanza Draws Political Fire

The two companies are not alone. ExxonMobil Exxon Mobil Corporation ↘ 1.51% reported second-quarter earnings of $14.5 billion — more than double a year earlier — while Chevron ↘ 2.10% posted roughly $12 billion in profit, nearly quadrupling year-on-year. Shell ↘ 2.32% also more than doubled quarterly earnings.oilprice+2

The scale of the profits has drawn political backlash. President Donald Trump on Monday criticized ExxonMobil and Chevron for making "too much money" off elevated fuel prices. "They ought to give some of that back to the public, and they better cut the retail price," Trump said.sharecast+1

Fragile Outlook

Oil prices fell sharply on Tuesday after Treasury Secretary Scott Bessent told CNBC that the U.S. and Iran "may have a deal today or tomorrow to open the Strait". A resolution to the five-month conflict could unwind the geopolitical risk premium that has underpinned the industry's earnings boom. Nasser warned that even if the strait reopened immediately, rebuilding depleted global inventories would take up to 18 months.bnnbloomberg+1