Shares of major oil companies have surged to all-time highs since the onset of the Iran war, causing historic price increases in global oil and gas markets. In the two weeks following the first U.S. and Israeli attacks on Iran, the market capitalization of six Western “supermajors” rose by over $130 billion. The conflict has created an energy supply shock, boosting stock valuations for companies like Shell, ExxonMobil, and Chevron.
Predictions indicate a multibillion-dollar windfall for the oil industry, with U.S. companies expected to gain approximately $63.4 billion, according to Rystad Energy. Goldman Sachs forecasts that BP and Shell could collectively profit £5 billion. Shell’s valuation climbed about 12% to a record £190 billion, absorbing the impact of Qatar’s liquefied natural gas outages. Exxon and Chevron experienced stock price increases of over 5% and 7%, pushing Exxon’s market value to $630 billion and Chevron’s to nearly $390 billion.
BP, Total Energy, and ENI also reported strong share gains, though not reaching their peak valuations. BP’s stock rose more than 12%, valuing it at £82 billion, while Total was up around 10% to €176 billion (£151 billion). ENI’s shares increased by approximately 13% to €67 billion.
Norwegian state-run Equinor emerged as a significant beneficiary, with its publicly traded shares rising over 20% in two weeks, though its market cap remains just shy of its record high from the gas crisis linked to Russia’s invasion of Ukraine.
International oil prices peaked at $117 a barrel earlier in the week and closed above $103. In response to these soaring profits, the global advocacy group 350.org called for a windfall tax on the largest oil companies, emphasizing that the financial benefits should support households and aid the transition to clean energy rather than provide subsidies to already profitable businesses.
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