Exxon Mobil and Chevron reported a combined $26.5 billion in second-quarter net profit, benefiting from strong refining margins and elevated fuel prices as geopolitical tensions in the Middle East continued to reshape global energy markets.
Exxon posted $14.5 billion in quarterly earnings, roughly double the level recorded a year earlier and its strongest quarterly performance since the energy price surge following Russia's invasion of Ukraine. Chevron reported a record $12.2 billion in profit, supported by robust oil production and refining operations.
The earnings come as American consumers continue to face high gasoline prices despite crude oil retreating from recent highs, prompting renewed criticism from U.S. President Donald Trump.
Trump has repeatedly argued that lower crude prices should translate into cheaper fuel for consumers and has called for gasoline prices to fall to around $2.25 per gallon. The national average, however, remains above $4 per gallon.
The administration has also directed the U.S. Department of Justice to examine whether oil companies engaged in price manipulation or anti-competitive practices that may have contributed to elevated fuel prices.
Energy analysts say the situation is more complex than crude oil prices alone.
While benchmark crude prices have eased, global refining capacity remains constrained following supply disruptions linked to the conflict in the Middle East. Tight supplies of gasoline, diesel and jet fuel have kept refining margins elevated, allowing major oil companies to generate significantly higher profits.
Chevron's refining business earned approximately $4.9 billion during the quarter, compared with $737 million a year earlier. Exxon also reported a sharp turnaround in refining, generating $5.5 billion in earnings after posting a loss in the previous quarter.
Industry experts noted that the refining sector not crude production has become the primary driver of higher fuel prices.
The conflict around the Strait of Hormuz, one of the world's most critical oil shipping routes, disrupted regional supply chains and tightened global availability of refined petroleum products. Reduced refinery output in several markets and limited exports of refined fuels further increased pressure on gasoline prices.
Despite political criticism, both companies continued expanding production.
Chevron produced approximately 4 million barrels of oil equivalent per day, supported by its acquisition of Hess, while Exxon increased output to around 4.5 million barrels per day, including record production from the Permian Basin.
Analysts said the strong production levels suggest that record earnings were largely driven by market conditions rather than reduced supply from the companies themselves.
The debate over fuel prices has become increasingly political as consumers continue to face higher transportation costs. Rising gasoline prices have also fueled broader inflation concerns, placing additional pressure on policymakers ahead of the 2026 U.S. midterm elections.
While the Justice Department's review is expected to examine market practices, economists caution that fuel prices are influenced by multiple global factors, including refining capacity, geopolitical risks, inventory levels and international demand.
With uncertainty surrounding Middle East tensions and global energy supplies, analysts expect oil and gasoline markets to remain volatile in the months ahead.
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