Democrats Fume As Oil Companies’ Profits Surge Amid the War in Iran

Democratic lawmakers are calling for accountability after some of the world’s largest oil companies reported surging second-quarter profits Friday, at a time when consumers are contending with $4-a-gallon gas at the pump.Chevron reported second-quarter profits of $12 billion, up $9.6 billion from the same period last year, while ExxonMobil announced its earnings were $14.5 billion, more than double its earnings from the second quarter of 2025. A day earlier, Shell came in with a profit of $9.84 billion, also more than doubling its profit from the same period of last year. Chevron’s CEO, Mike Wirth, said in a statement that the company’s windfall was the result of a “disciplined investment and strong execution that drove record U.S. upstream production, record crude throughput in our U.S. refineries, and exceptional reliability across key assets.”But Democratic lawmakers were not buying it, suggesting instead that the heightened profits were the result of elevated gas prices amid market disruptions caused by the war with Iran. AAA reports that the average price for a regular gallon of gas was $4.10 as of Friday morning, up from $3.14 a year ago. “Oil companies are making record profits as a result of the Republican war of choice in Iran,” the House minority leader, Hakeem Jeffries, wrote on X. “Meanwhile, everyday Americans are drowning in skyrocketing gas prices. Hold the crooks accountable.”Congressman Jim McGovern wrote, “Outrageous. Americans are getting gouged at the pump because of Trump’s Iran War — meanwhile oil companies are DOUBLING their profits off your pain. Republicans reward them with tax breaks & handouts. Democrats will crack down on corporate greed & hold price gougers accountable.”Senator Sheldon Whitehouse wrote on X that oil companies are “looting consumers and the planet.”“Such good people,” he quipped. The soaring profits are likely to renew interest in a tax on oil companies’ windfalls. Earlier this year, Mr. Whitehouse introduced a bill to impose a 50 percent tax on what he calls excess oil profits. Mr. Whitehouse told NPR earlier this month that he believes his bill is “generous” because oil companies can “keep half of the excess profits.”The United Kingdom and the European Union imposed such a tax on oil companies in 2022 at the start of Russia’s invasion of Ukraine. The tax is still in effect in the U.K. On Thursday, Portugal, approved a 33 percent tax on what it called oil companies’ excess profits.While politicians and consumers seethe, financial analysts are questioning the oil companies’ decisions to sit on the windfall profits, at least for the time being.“Most players have adopted a wait-and-see approach to the market turmoil, preferring to accumulate cash on the balance sheet rather than return it to shareholders or increase investment” on new infrastructure that could boost future production, according to a statement by the senior vice president of corporate research at the consultancy group Wood Mackenzie.“Capital discipline has proved more durable than either the bears or bulls expected,” Tom Ellacott said. “High prices ease the financial pressure. They do not solve the next-decade production challenge. The second half of 2026 will show whether the strategic response catches up with the financial firepower.”

Democrats Fume As Oil Companies’ Profits Surge Amid the War in Iran

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