DATA & FIGURES

The estimated adjusted net income for Exxon is $15.9 billion and for Chevron is $10 billion for the second quarter. Oil prices have soared, with Brent crude reaching over $100 per barrel. Gas prices in the U.S. have topped $4 per gallon. The war has also led to a production squeeze, with 63 million barrels of crude stuck at sea as a result of the U.S. pulling the Iran sanction waiver.

THE SCENARIO

The U.S.-Iran conflict has created a geopolitical disruption that has driven oil and gas prices higher, leading to expected bumper profits for supermajors. The industry is facing backlash from governments and politicians, who are seeking to capitalize on the public's frustration with high fuel prices. The situation is further complicated by the fact that governments are in a weaker financial position than they were four years ago, making the high fuel prices more challenging to manage.

DIRECT QUOTE

"The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil. Those prices are dropping like a rock! In other words, customers are being ‘gouged’." — Donald Trump, President of the United States

BBN INSIGHT

The situation highlights the complex relationship between geopolitics, energy markets, and the economy. On the one hand, the conflict has driven oil and gas prices higher, leading to expected bumper profits for supermajors. On the other hand, the high fuel prices are putting pressure on governments and consumers, who are already facing economic challenges. The industry's argument that geopolitical disruptions, not corporate actions, drove prices higher is likely to fall on deaf ears as governments seek to capitalize on the public's frustration. The Positive Side: The high oil and gas prices could lead to increased investment in renewable energy sources, as governments and consumers seek to reduce their dependence on fossil fuels. The Negative Side: The high fuel prices are likely to have a negative impact on the economy, particularly for low-income households who spend a larger proportion of their income on fuel.

MARKET REACTION

The price of oil has surged, with Brent crude reaching over $100 per barrel. The price of gas in the U.S. has topped $4 per gallon. The stock prices of supermajors like Exxon and Chevron are likely to be affected by the expected bumper profits, but the industry is also facing backlash from governments and politicians.