Oil giants' $93bn war windfall fuels climate outrage

Eight of the world's largest oil companies amassed more than $93bn in combined profits in just three months, as the US-Israeli war on Iran triggered a surge in energy prices and deadly heatwaves intensified across the globe. The Guardian's analysis of second-quarter earnings shows that the windfall almost doubled the $50bn the same firms reported in the same period last year, with campaigners warning that ordinary households are left paying the price through higher bills and climate chaos.

Profit bonanza during war and climate crisis

From April to June, the first full financial quarter after the outbreak of the Iran conflict, the fossil fuel giants — Saudi Aramco, BP, Shell, Equinor, TotalEnergies, Eni, Chevron and ExxonMobil — made over $700,000 of profit every minute. Their market valuations swelled by roughly $600bn to exceed $3tn, even as temperatures soared in a series of heatwaves that scientists have increasingly linked to carbon emissions from major oil producers.

Industry leader Saudi Aramco reported a 34% jump in quarterly net income to more than $33bn, despite damage to its infrastructure from Iranian and Houthi drone and missile strikes. The state-owned producer has historically been responsible for more carbon emissions than any other company, according to the Carbon Majors database. It has also long been at the forefront of efforts to block or delay international climate action, a stance that critics say is now untenable.

BP results underscore disproportionate gains

On Tuesday, BP became one of the last supermajors to publish its April-to-June results, posting quarterly profits of $5.73bn. That is the highest since the first year of Russia's full-scale war on Ukraine and more than double the $2.5bn earned in the previous three months. The company's performance mirrors the broader industry trend, with rivals such as Shell, ExxonMobil and Chevron also reporting massive gains as supply disruptions pushed oil prices above $126 a barrel.

The price spike was triggered by the US-Israeli military campaign against Iran, which destabilised a region responsible for a significant share of global oil output. For the oil giants, the conflict created a historic opportunity to capitalise on disrupted supplies. For vulnerable households and communities, it meant even steeper energy costs and a deepening climate emergency.

Scientific evidence links emissions to deadly heatwaves

Last September, a landmark scientific analysis found that the emissions from any single one of the 14 largest fossil fuel companies were enough to cause more than 50 heatwaves that would otherwise have been virtually impossible. This summer, Europe experienced its worst heatwave on record, again classified by scientists as impossible without human-caused global heating. In late July 2026, severe drought was officially declared across more than half of England, leaving already arid landscapes scorched and barren.

The connection between fossil fuel profits and climate harm has reignited calls for the companies to bear financial responsibility. Patrick Galey, lead on fossil fuels at Global Witness, said: “BP's sky-high profits are a scandalous reminder of who's been cashing in on human misery this year. While wildfires threaten communities across the world, drought bites and energy costs spiral, ordinary families are paying the price for big oil's prioritisation of shareholder wealth over all else.”

Growing demands for windfall taxes and reparations

Campaigners argue that the extraordinary earnings should be redirected into climate adaptation and a rapid transition to renewable energy. The idea of imposing windfall taxes on oil and gas producers has gained momentum in several countries, though the industry has so far resisted such measures. Saudi Aramco and its peers have instead increased dividends and share buybacks, boosting investor returns while spending only a fraction of their profits on low-carbon technologies.

The sheer scale of the quarterly windfall — enough to pay for substantial portions of national climate resilience programs — has intensified scrutiny of the sector's political influence. Saudi Arabia has for decades led successful efforts to weaken international climate agreements, and the latest crisis has exposed the risks of such obstruction.

Implications for energy transition and global stability

As the Iran conflict continues to disrupt supply chains and economies, the oil giants' profits are likely to remain elevated. But the long-term outlook is uncertain: the world's growing push toward renewable energy, combined with public anger over price gouging and climate inaction, could force a reckoning. Governments may face mounting pressure to legislate against excessive profits, invest emergency funds in green infrastructure, and hold polluters accountable for their contributions to climate disasters.

For now, the twin emergencies of war and climate crisis have handed the fossil fuel industry its most lucrative quarter in history. The question is whether this windfall will be used to accelerate the transition away from fossil fuels — or to reinforce a system that scientists say is accelerating the planet toward catastrophe.