just posted its highest quarterly earnings ever, its second-highest, and doubled its profit from a year earlier even though it missed analyst estimates. Together the three earned over the quarter: Exxon $14.5 billion, Chevron $12.1 billion, Shell $9.8 billion.
The cause is the war with Iran, which has effectively shut the Strait of Hormuz. On the most recent day of counting, were confirmed to have passed through, according to . The conflict also blocked exports of gasoline, jet fuel, and diesel, and Ukraine's strikes on Russian refineries made the fuel shortage worse.
Higher crude prices and more than offset the damage the war did to Exxon's and Shell's own Middle East operations — the price effect beat the volume loss.
The windfall has drawn political fire. has proposed a on oil profits in the U.S., and several European governments are pushing the same idea. The U.K. already has one.
Exxon CEO Darren Woods told analysts the tax is a "misguided policy" that punishes companies for succeeding in a volatile industry. He said Exxon canceled planned European investments after the last windfall tax and is now on the grounds that the levy is not a legal taking.
Exxon is booking record cash from a war-driven price spike while simultaneously suing the governments that want a share of it.
None of the three is rushing to drill new wells. , Chevron's CEO, told analysts he can't predict when the Strait will settle down and flows resume. The companies are paying down debt instead, betting the shortage is temporary.