Oil industry profits are soaring:
Earnings for 5 major Western oil companies are on track to surge to ~$44 billion in Q2 2026, the 3rd-largest quarterly total on record.
The only quarters with larger profits were Q2 and Q3 2022, when oil prices exceeded $120/barrel.
This comes as ExxonMobil, $XOM, posted $14.7 billion in profit, its strongest quarter since Q3 2022.
At the same time, Chevron, $CVX, reported a record $12.1 billion quarterly profit, surpassing its previous high set in 2022.
Meanwhile, Shell, $SHEL, reported $9.8 billion in profit in Q2, its 2nd-largest quarterly profit in the company's history.
Oil companies are cashing-in massive gains amid the Iran War.
Oil tops $100 and drags everything down with it
Brent crude punched through $101 and WTI hit $92.61 after Houthi attacks on Saudi tankers widened the Iran conflict into Red Sea shipping lanes, sending the Nasdaq down 2.2% and the S&P 500 down 1.3% as traders priced the oil shock straight into inflation expectations.
Crypto slipped with the rest of the risk stack, with total market cap down about 2% to $2.21T, bitcoin:native near $64,700, and the Fear & Greed index at 37. Rate markets now see an 82% chance of a September Fed hike, up from 52% a week ago, per CME FedWatch.