Saudi Aramco announced on Tuesday a significant 33% increase in its profit for the second quarter of this year. This growth was driven by the kingdom benefiting from the conflict between the US and Israel against Iran, which led to higher energy prices, as well as by the company's pipeline allowing it to bypass the Strait of Hormuz.
The adjusted net profit of Saudi Arabia's state oil giant increased to $33.4 billion compared to $25.2 billion the previous year. The second quarter covered the period from early April to the end of June. Although ceasefire agreements between the US and Iran were reached and extended in April and June, military operations continue, supporting high energy prices.
Iran is attempting to assert its control over the Strait of Hormuz and has attacked dozens of vessels trying to pass through the strait in Oman's territorial waters. The US has conducted bombings against Iran, and in response, Tehran has targeted Gulf states, particularly Kuwait and Bahrain.
The war caused the internationally benchmarked Brent crude price to rise above $100 per barrel in May, and again in July. Prices for refined products such as diesel fuel, aviation fuel, and gasoline have significantly increased.
Iraq, Kuwait, Bahrain, and Qatar were forced to cancel or substantially limit energy supplies. However, thanks to the East-West Pipeline, connecting the kingdom's eastern oil fields to the Yanbu port in the Red Sea, Saudi Arabia was able to export about two-thirds of its pre-war production capacity.
Aramco CEO Amin Nasser noted the importance of this pipeline for the company in a press release commenting on the results. He stated: 'Despite the unprecedented supply disruption through the Strait of Hormuz, we continued to demonstrate our ability to maintain business continuity by utilizing our diverse asset base and multi-decade plan, including strategic infrastructure such as the East-West Pipeline, storage facilities, and export terminals.'
The East-West Pipeline has become a model for other Middle Eastern countries seeking to bypass the Strait of Hormuz in the coming years. Experts told Middle East Eye that tens of billions of dollars will be spent on new infrastructure to circumvent Hormuz in the coming years.
Artem Abramov, Deputy Head of Analysis at Rystad Energy, previously told MEE: 'When we speak with our clients in the region, they say they never want to deal with this again. These bypass projects will move forward.'
The UAE is building a second pipeline to the Fujairah port to bypass the Strait of Hormuz, which will allow them to double their export capacity by 2027. Meanwhile, Iraq, the second-largest producer in OPEC's oil cartel, signed an agreement with Syria in July to restore a pipeline from its northern oil fields to the Mediterranean coast of Syria. MEE was the first to reveal this project and its support from the US.
Aramco is not the only energy company that has benefited from the war. American energy giants ExxonMobil and Chevron also reported extremely high revenues in the second quarter. ExxonMobil's profit doubled compared to the previous year, and Chevron achieved its highest quarterly profit in history.
Trump, who is facing an unpopular war and disappointment over high gas prices, pointed to these companies. He told reporters on Monday: 'Chevron: too much money. ExxonMobil: too much money. They should return some of this money to the public, and they should lower the retail price, the consumer price.'
After Trump abandoned the threat of launching the 'biggest' bombing campaign against Iran since World War II, the Brent price fell by about eight percent to $79 per barrel from Sunday. US Treasury Secretary Scott Bessent stated on Tuesday that the US and Iran are close to a ceasefire agreement and the resumption of operations in the Strait of Hormuz.
The British oil and gas company Shell reported that its profit more than doubled compared to the same period last year. This growth occurred against the backdrop of sharply rising oil prices, triggered by the conflict in the Strait of Hormuz between the US and Iran.
The company's net profit reached $9.84 billion in the second quarter of this year. This coincided with Brent crude prices increasing from $60 per barrel in January to $114 at the beginning of May, which happened at the peak of the conflict.
Shell's CEO noted that the war has led to 'serious disruptions in global energy markets.' The company reported a 30% decrease in production; however, despite these setbacks, or perhaps because of them, Shell's profit doubled in less than a year.
As energy and oil prices rise globally and Shell's margins expand, environmental organizations in the UK are demanding an 'extraordinary tax' on the oil and gas giant. Representatives of these groups stated that 'Europe is engulfed in apocalyptic wildfires, communities across Asia are suffering from devastating floods, and the UK is battling drought and even more dangerous heat.'
They emphasized that these phenomena are not random but represent a defining characteristic of the fossil fuel era. Activists argue that Shell profits while the rest of the population bears the burden of catastrophic consequences. Robert Palmer, deputy director of the Uplift campaign, stated that 'the world is literally burning, and Shell wants to add more fuel.'
