US Oil Companies Poised For $60 Billion Windfall Amid Iran War, Says Energy Research Firm: Report

American oil producers are reportedly on track to reap significant financial benefits as crude prices surge due to the ongoing conflict involving Iran. Windfall For Oil Companies According to a report by the Financial Times, American oil producers are set to gain over $60 billion this year if crude prices remain high due to the Iran war. The conflict, which began on Feb. 28, has caused oil prices to surge by approximately 47%, leading to an estimated $5 billion increase in cash flow for U.S. producers this month alone, as per Jefferies’ modeling. Energy research firm Rystad projects that if U.S. oil prices average $100 per barrel this year, the companies could see a $63.4 billion boost. The increased cash flow is expected to benefit U.S. shale companies, which have minimal operations in the Middle East. However, major international oil companies like Exxon Mobil Corp. (NYSE:XOM) and Chevron Corp. (NYSE:CVX) face challenges due to their extensive assets in the Gulf, impacted by the closure of the Strait of Hormuz, the report added. Trump Highlights Benefits Of Higher Crude Oil Prices As Brent crude prices exceeded $100, President Donald Trump highlighted in a post on Truth Social the financial benefits for the U.S., the world’s largest oil producer. "The United States is the largest Oil Producer in the World, by far, so when oil prices go up, we make a lot of money," he said. At the time of writing, U.S. West Texas Intermediate (WTI) futures expiring in April were up more than 3%, hovering at $98.71 per barrel. Brent crude futures expiring in May were also up nearly 3%, hovering at $103.14 a barrel. Largest Oil Supply Shock On Record, Says Goldman Sachs The conflict has led to what Goldman Sachs described as the largest oil supply shock on record, with Persian Gulf exports plummeting to about 3% of normal levels at the Strait of Hormuz. This disruption surpasses historical events like the 1973 OPEC embargo in terms of immediate impact on oil flow, the firm stated. Meanwhile, Kevin O’Leary emphasized the global reliance on oil, noting that alternative energy sources have not yet met expectations. "Oil is the only commodity used in every single sector of every economy. Even our adversaries need it," he said. On the other hand, BlackRock Inc. (NYSE:BLK) CEO Larry Fink suggested that oil prices might drop below $50 if the conflict results in a neutralized Iran, potentially stabilizing the market once the situation resolves. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Shutterstock