Exxon and Chevron Report Massive Profits Amid Iran War and Trump’s Midterm Rally Claims

ExxonMobil and Chevron announced massive profits on Friday, fueled by soaring oil prices amid the ongoing Iran war, just days before the November 3 midterm elections. President Donald Trump has openly celebrated the windfall for U.S. energy companies, calling their earnings a “freaking fortune” during campaign rallies.

Record Profits Driven by High Oil Prices and Refining Margins

Both Exxon and Chevron posted staggering third-quarter earnings, buoyed by oil prices climbing well above $100 per barrel and surging refining margins. Exxon’s third-quarter profit reached $15.4 billion, more than double the $7.5 billion made in the same period last year and nearing its record quarterly profit from 2022. Chevron’s earnings also jumped significantly to $9.9 billion from $3.5 billion a year earlier.

Exxon CEO Darren Woods spoke during the earnings call about the company’s efforts to maintain supply despite the volatile market. He highlighted a major refining expansion in Beaumont, Texas, completed in 2023, which helped to keep fuel prices from rising even further. Woods acknowledged the impact high prices have on consumers and economic growth but emphasized Exxon’s commitment to growing production efficiently to meet demand.

President Trump Highlights Oil Profits Ahead of Midterms

As the midterm elections approach, President Trump has drawn attention to the sizable profits U.S. oil companies are making amid geopolitical tensions. At campaign rallies, he said, “I could just see the fake headlines. ‘President Trump is talking about all the money they’re making while people are suffering at the pump.’ That’ll be the headline. But I said, ‘I don’t give a damn. I’m going to say it.’ We’re making a freaking fortune.”

Despite the global conflicts driving profits, oil companies have generally refrained from boasting about their earnings, recognizing they do not control global oil markets or fuel prices. Instead, they are capitalizing on a favorable commodities environment.

Refiners and Market Gains Highlighted Amid Capacity Losses

Firms concentrating on oil refining have experienced even greater gains. With approximately 10% of global refining capacity offline in the Middle East and Russia, companies like Phillips 66 and Valero Energy reported record profits this quarter—$5.6 billion and $6.8 billion, respectively. Their stock prices have soared, with Phillips 66’s market cap up 104% and Valero’s up 140% in the past year.

Valero expanded its operations recently by purchasing the mothballed Houston refinery of petrochemical maker LyondellBasell for $320 million, signaling ongoing growth in a tight market.

Industry Leaders Expect Prolonged Market Volatility

Executives at Exxon and Chevron project that elevated refining margins and fuel prices will persist for some time. Exxon’s Woods noted that even if peace deals were reached in Iran and Ukraine, restoring supply chains and repairing damaged refineries in Russia will take until well into next year or longer. Chevron CEO Mike Wirth echoed this outlook, pointing out that 10% of global refining capacity remains offline and that margins will only moderate as refinery operations recover and exports increase.

Both companies also highlighted the challenges posed by instability in the Middle East. Exxon is losing natural gas profits due to Qatar shutdowns, and Woods stressed the critical need for the Strait of Hormuz to reopen to resume normal resource flows. Meanwhile, Middle Eastern oil exports have mostly returned to prewar levels this fall, helped by Saudi Arabia and U.S. naval escorts, despite ongoing Iranian attacks on vessels and costly tanker leasing and insurance.

Chevron benefits from owning or leasing oil tankers at prewar rates, which CEO Wirth described as a “material contributor to the results.”

These massive profits come amid complex geopolitical tensions and market disruptions, underscoring both the risks and rewards for U.S. energy companies navigating today’s global energy landscape.