The Iran war has disrupted oil shipments through the Strait of Hormuz, pushing crude prices above $82 for WTI and $88 for Brent, up from around $73 before the conflict. This supply disruption has led to massive profits for oil giants Exxon Mobil and Chevron, which reported combined quarterly earnings of $26.6 billion, more than double last year. The companies benefit from their integrated operations, covering production, refining, and marketing, allowing them to capitalize on elevated prices despite rising gasoline costs for consumers. However, further escalation in the region could increase supply risks and profits, while a peace deal reopening Hormuz might quickly reverse these gains. Investors should consider Exxon and Chevron's strong cash flow generation but remain cautious about relying solely on geopolitical tensions for stock gains.
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