Thursday, October 1, 2026

RN

Right News

Foreign Policy

War Profiteers: How Energy, Banking, and Defense Giants Are Capitalizing on the Iran Conflict

While households struggle with rising costs, major corporations are reporting record earnings driven by market volatility and increased defense spending.

Foreign PolicyPublished May 8, 2026 at 8:13 AM
Woman pointing at computer screen with a chart on it

The ongoing conflict with Iran has created a volatile economic landscape, forcing families to tighten their belts while corporate giants reap the rewards of global instability. With the effective closure of the Strait of Hormuz—a critical artery for one-fifth of the world’s oil and gas—energy markets have been sent into a tailspin.

European oil giants with robust trading arms have successfully capitalized on these sharp price fluctuations, with TotalEnergies reporting a staggering 33% profit jump to $5.4 billion in the first quarter of 2026.

Despite supply disruptions, American titans like ExxonMobil and Chevron continue to beat analyst expectations, positioning themselves for further growth as oil prices remain elevated. Meanwhile, Wall Street is thriving on the chaos.

The 'Big Six' banks, including JP Morgan, Goldman Sachs, and Morgan Stanley, collectively raked in $47.7 billion in profits during the first three months of 2026. This windfall is largely attributed to a surge in trading volumes as investors scramble to navigate market uncertainty.

The defense sector is also seeing a predictable boost as nations rush to replenish depleted weapon stockpiles and address vulnerabilities in air and drone defense.

Industry leaders like BAE Systems, Lockheed Martin, and Northrop Grumman report record order backlogs, citing a global environment of heightened security threats that necessitates increased government spending.

Even the renewable energy sector is attempting to pivot the crisis to its advantage, with firms like NextEra Energy and Vestas seeing surging interest as the conflict underscores the push for energy diversification. While the fallout from the Iran war hits the budgets of everyday citizens, these sectors have found a lucrative path forward amidst the turmoil.

Tags

foreign-policyiraneconomydefenseenergy

More in Foreign Policy

Russian President Vladimir Putin speaks during an annual plenary session of the Valdai Discussion Club, on October 2, 2025 in Sochi, Russia
Foreign Policy8h ago

Putin Doubles Down on Ukraine War as Kremlin Signals No End in Sight

Vladimir Putin shows no intention of halting the invasion of Ukraine, as the Kremlin doubles down on its military objectives and continues to threaten European stability through a campaign of hybrid warfare.

A firefighter wearing heavy duty black overalls with fluorescent green stripes holds a hosepipe next to a damaged buildings, which is at the scene of a Russian strike in the Kyiv region.
Foreign Policy17h ago

Russia Unleashes Massive Assault on Ukrainian Power Grid

Russia launched its most significant attack on Ukraine's energy infrastructure since the end of the last heating season, hitting 11 regions and causing widespread power disruptions.

A member of the Iraqi security forces gestures as he travels in a convoy through Baghdad, Iraq (30 September 2026)
Foreign Policy20h ago

Mission Accomplished: US and UK Forces Complete Withdrawal from Iraq

The final British and American troops have exited Iraq, marking the successful conclusion of Operation Inherent Resolve and the decisive defeat of the Islamic State's territorial caliphate.