Companies Profiting From the Iran War
BBC Business reported Friday that the US-Israel war in Iran has generated Iran war profits across energy, banking, and defence, even as households and governments bear mounting costs from the conflict.
Energy Majors Reap Windfall From Hormuz Disruption
The Strait of Hormuz, through which roughly a fifth of global oil and gas flows, effectively shut down in late February. That supply shock sent energy prices on a volatile run. European oil majors with active trading desks benefited most. BP’s first-quarter profit more than doubled to $3.2 billion, driven by what the company called exceptional trading performance. Shell posted first-quarter earnings of $6.92 billion, exceeding analyst expectations. TotalEnergies reported a near one-third jump in quarterly profit to $5.4 billion. US giants ExxonMobil and Chevron saw year-on-year earnings dip due to supply disruptions. Both still beat forecasts and expect further growth as elevated oil prices persist.
Wall Street Banks Post Near-Record Quarters
The financial sector has also seen outsized gains. JP Morgan’s trading division generated a record $11.6 billion in revenue during the first quarter of 2026. That helped the bank to its second-largest quarterly profit in history. Across all six major Wall Street lenders, combined first-quarter profits reached $47.7 billion. Susannah Streeter, chief investment strategist at Wealth Club, told the BBC that heavy trading volumes particularly benefited Morgan Stanley and Goldman Sachs. Investors rushing out of riskier assets and into safe havens drove volumes higher. Streeter noted that the volatility also attracted opportunistic buyers, fuelling a recovery rally that further boosted trading revenues.
Defence Contractors Report Record Order Backlogs
Emily Sawicz, senior analyst at RSM UK, told the BBC that the conflict has exposed critical gaps in air defence capability across Europe and the United States. That recognition is accelerating procurement of missile defence systems, counter-drone technology, and broader military hardware. BAE Systems said Thursday it expects strong full-year sales and profit growth, citing rising government defence budgets globally. Lockheed Martin, Boeing, and Northrop Grumman each reported record order backlogs at the close of the first quarter. Defence share prices have retreated since mid-March on valuation concerns, despite the strong underlying demand picture.
Renewables Draw Fresh Attention Amid Energy Anxiety
The crisis is also accelerating interest in clean energy alternatives. Even in the United States, where the current administration has championed expanded fossil fuel production, the war has renewed urgency around domestic renewable capacity. Streeter said energy security fears have supercharged investor appetite for the renewable sector in ways few anticipated.
Read Next: Oil Markets Brace for Extended Strait of Hormuz Disruption
