War Profits: Oil Majors, Banks, and Defense Firms Cash In on Iran Conflict

BBC Business reported Thursday that while households and governments worldwide absorb the economic shock of the US-Israel war in Iran, a handful of industries are generating extraordinary earnings from the chaos.

Hormuz Shock Sends Energy Profits Soaring

The conflict’s most immediate financial impact has been a violent lurch in global energy prices. The Strait of Hormuz, a chokepoint for roughly one-fifth of the world’s oil and gas, effectively closed in late February. That disruption created wild price swings that European oil traders were positioned to exploit.

BP saw first-quarter profits more than double to $3.2 billion, driven by what the company itself called an exceptional trading performance. Shell beat analyst forecasts with quarterly earnings of $6.92 billion. TotalEnergies posted a near one-third jump in profits to $5.4 billion. American majors ExxonMobil and Chevron reported year-on-year earnings declines due to supply disruption, yet both surpassed analyst expectations and project further growth ahead.

Wall Street Logs Historic Trading Revenues

Big banks have been equally well-positioned. JP Morgan’s trading division generated a record $11.6 billion in first-quarter revenue, lifting the bank to its second-largest quarterly profit in history. Across the full “Big Six” group of US lenders, combined profits reached $47.7 billion in the first three months of 2026.

Susannah Streeter, chief investment strategist at Wealth Club, told BBC Business that heavy trading volumes have specifically benefited Morgan Stanley and Goldman Sachs. She noted that the war’s volatility prompted simultaneous selling from fear-driven investors and opportunistic buying from those targeting discounted assets, fueling a recovery rally in the process.

A Sector With Deep Roots in Conflict

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Defense spending was always likely to rise. Emily Sawicz, senior analyst at RSM UK, told the BBC that the conflict has exposed critical gaps in air defense, accelerating procurement of missile systems, counter-drone technology, and conventional military hardware across Europe and the United States.

BAE Systems flagged strong sales and profit growth expectations for this year, citing elevated global security threats. Lockheed Martin, Boeing, and Northrop Grumman each reported record order backlogs at the end of the first quarter. Defense stocks have retreated somewhat from mid-March highs amid valuation concerns, though underlying demand remains robust.

Renewables Find Unlikely Momentum

The conflict has also accelerated interest in energy independence. Streeter noted that reliance on volatile fossil fuel supply chains has supercharged attention toward the renewables sector, even within a US policy environment that has favored expanded drilling.

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