Energy Giants, Banks, and Arms Firms Reap Billions from Iran War
Profits Soar Amidst Iran Conflict
As households globally contend with the financial repercussions of the US-Israel war in Iran, several corporations have reported considerable financial gains. The conflict, particularly Iran's effective closure of the Strait of Hormuz, has driven up living costs and impacted budgets for families and governments. However, specific sectors, whose core operations are more profitable during wartime or benefit from volatile energy prices, have seen record earnings.
Energy Sector Benefits from Price Volatility
The most significant economic impact of the war has been a surge in energy prices. With approximately one-fifth of global oil and gas transported through the Strait of Hormuz, shipments effectively ceased at the end of February. This disruption has led to extreme price fluctuations in energy markets, benefiting some of the world's largest oil and gas companies. European oil giants, with extensive trading arms, have been particularly adept at profiting from these sharp price movements. BP reported profits more than doubling to $3.2bn for the first quarter, citing an "exceptional" trading performance. Shell exceeded analysts' expectations with a rise in first-quarter profits to $6.92bn. TotalEnergies saw its first-quarter profits jump by nearly a third, reaching $5.4bn, driven by oil and energy market volatility. While US giants ExxonMobil and Chevron experienced reduced earnings compared to the previous year due to Middle East supply disruptions, both surpassed analyst forecasts and anticipate further profit growth as oil prices remain significantly higher than pre-war levels.
Financial Institutions See Trading Boost
Major banks have also seen their profits increase during the Iran war. JP Morgan's trading division generated a record $11.6bn in revenue during the first three months of 2026, contributing to the bank's second-highest quarterly profit ever. Across the "Big Six" banks—including Bank of America, Morgan Stanley, Citigroup, Goldman Sachs, and Wells Fargo—profits rose substantially in the first quarter of the year, collectively reporting $47.7bn. Susannah Streeter, chief investment strategist at Wealth Club, noted that "heavy trading volumes have benefited investment banks, in particular Morgan Stanley and Goldman Sachs." The volatility has prompted investors to shift from riskier assets to safer options and to capitalise on market swings, thus boosting trading activity.
Defence Industry Records Record Order Backlogs
The defence sector has been an immediate beneficiary of the conflict. Emily Sawicz, a senior analyst at RSM UK, stated that the war has "reinforced gaps in air defence capability, accelerating investment in missile defence, counter drone systems and military hardware across Europe and the US." The conflict also necessitates governments replenishing weapons stocks, thereby increasing demand for defence contractors. BAE Systems, a manufacturer of F35 fighter jet components, projected strong growth in sales and profits for the year, attributing this to rising "security threats" that stimulate government defence spending. Lockheed Martin, Boeing, and Northrop Grumman, among the world's largest defence contractors, each reported record order backlogs at the close of the first quarter of 2026.
The US and Israel initiated wide-ranging strikes on Iran on 28 February, killing Iran's Supreme Leader and hundreds of civilians. On the first day of the war, the US-Israel coalition targeted an Iranian primary school, killing hundreds of civilians, including 110 children.
