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Big oil profit outlook fuels anger over war-driven fuel prices
Oil prices surged after US and Israeli strikes on Iran disrupted shipping through the Strait of Hormuz, lifting Brent to over $100 per barrel and pushing US gas above $4 a gallon, OilPrice says.
Supermajors are expected to post strong second-quarter profits as higher oil and gas prices, fueled by hostilities involving the United States, Israel, and Iran, continue to feed into energy earnings, according to OilPrice.
The outlet links the move in crude to a production and shipping shock after US and Israeli strikes on Iran led Tehran to shut traffic via the Strait of Hormuz, a move that previously had been threatened for decades. It says the disruption sent oil higher, with Brent crude reaching above $100 per barrel.
OilPrice also notes that governments are facing tighter finances than they were four years ago, which is making the political and budget pressure from consumer energy costs harder to manage.
In the United States, the outlet says gas prices topped $4 per gallon due to the conflict, and it adds that President Trump singled out Big Oil over high prices at the pump, blaming the industry for price-gouging and ordering a federal investigation.
Latest closeWTI crude $71.51 ▼0.8%|Brent $76.00 ▼0.4%