Thanks to Trump’s Iran War, Big Oil Raking in $30 Million Per Hour in Windfall Profits

Making Trump's friends richer

Brad Reed

Donald Trump’s unprovoked war of choice in Iran has been a goldmine for the fossil fuels industry, which is earning massive windfall profits thanks to the rise in the price of petroleum.

An analysis published by The Guardian estimated that the 100 biggest oil and gas companies have collectively raked in an extra $30 million per hour since Trump launched his war with Iran without any congressional authorization in late February.

In just the first month of the conflict, The Guardian reported, Big Oil made $23 billion in windfall profits, and the industry is projected to haul in an additional $234 billion in windfall profits by the end of the year if the price of oil stays in the $100 range.

The top beneficiaries of the Iran conflict are Saudi Aramco, which is projected to earn $25.5 billion in windfall profits by the end of the year; Kuwait Petroleum Corp., which is projected to earn $12.1 billion; and ExxonMobil, which is projected to earn $11 billion.

“The excess profits come from the pockets of ordinary people as they pay high prices to fill up their vehicles and power their homes, as well as from businesses incurring higher energy bills,” The Guardian noted. “Dozens of countries have cut fuel taxes to help struggling consumers, meaning those nations, including Australia, South Africa, Italy, Brazil and Zambia, are raising less money for public services.”

The Guardian’s analysis was conducted by climate watchdog Global Witness, using data from intelligence provider Rystad Energy.

Patrick Galey, head of news investigations at Global Witness, told The Guardian that Big Oil’s windfall profits should be a wakeup call to the world about the dangers of relying on fossil fuels.

“Moments of global crisis continue to translate into bumper profits for oil majors while ordinary people pay the price,” Galey said. “Until governments kick their fossil fuel addiction, all of our spending power will be held hostage to the whims of strongmen.”

Climate advocates have for months been calling for a windfall profits tax on Big Oil during the Iran War as a way to retrieve some of the money consumers have lost during the conflict.

Earlier this month, the climate advocacy organization 350.org renewed its previous call to slap fossil fuel companies with a windfall profits tax, and then invest the revenue into renewable energy sources to provide real long-term relief to global consumers.

Beth Walker, an energy policy expert at climate change think tank E3G, also recommended a windfall profits tax with the aim of ending reliance on dirty energy sources.

“Governments should use taxes on windfall profits to accelerate the transition to green energy,” said Walker, “rather than deepen dependence on fossil fuels.”