Profits skyrocket for banks and companies amid Iran war

While households and governments face rising costs linked to the U.S.-Israel war involving Iran, some industries are seeing significant financial gains, the BBC reported.

The conflict has disrupted global markets, particularly after Iran effectively halted shipments through the Strait of Hormuz, a key route for roughly one-fifth of the world’s oil and gas. This has driven sharp fluctuations in energy prices, increasing the cost of living and putting pressure on businesses and public finances.

Certain sectors, however, have benefited from this situation. Profits at major oil companies such as BP, Shell and TotalEnergies rose significantly in the first quarter of 2026, supported by volatility in energy markets. Even ExxonMobil and Chevron, which reported lower year-on-year earnings, still exceeded expectations, anticipating further gains as prices remain elevated.

Large financial institutions have also seen increased profits, driven by a surge in trading activity. Market uncertainty prompted investors to shift funds and capitalize on price swings, boosting revenue across the sector. Combined profits among leading banks reached tens of billions of dollars during the first quarter.

Defense companies are another group benefiting from the situation. Companies such as BAE Systems, Lockheed Martin, Boeing and Northrop Grumman have reported strong demand and growing order backlogs. However, some defense stocks have declined recently amid concerns about high valuations.

The conflict has also accelerated interest in renewable energy, highlighting the risks of relying heavily on fossil fuels. Companies in the renewable sector, including NextEra Energy, Vestas and Orsted, have reported rising profits, while demand for solar panels, heat pumps and electric vehicles has also increased.