While households worldwide grapple with the economic fallout of the US-Israel conflict in Iran, certain companies have reported significant profits. The instability caused by the conflict and Iran’s effective closure of the Strait of Hormuz has led to a surge in the cost of living and strained the budgets of businesses, families, and governments. However, while some face severe challenges, others—whose core operations thrive during wartime or benefit from volatile energy prices—have achieved record earnings.
Below are some of the sectors and companies that are generating billions as the Middle East conflict persists.
1. Oil and gas
The most significant economic consequence of the conflict to date has been a sharp rise in energy prices. Approximately one-fifth of global oil and gas is transported through the Strait of Hormuz, but these shipments largely ceased at the end of February. This has resulted in volatile price fluctuations in energy markets, benefiting some of the world’s largest oil and gas companies. European oil giants, with their robust trading divisions, have been primary beneficiaries, capitalizing on sharp price movements to boost profits. BP reported a more than twofold increase in profits to $3.2 billion (£2.4 billion) for the first three months of the year, attributing it to an “exceptional” performance in its trading division. Shell also surpassed analysts’ expectations, reporting a first-quarter profit increase to $6.92 billion. TotalEnergies, another global major, saw its first-quarter 2026 profits surge by almost a third to $5.4 billion, propelled by volatility in oil and energy markets. US giants ExxonMobil and Chevron experienced a decline in earnings compared to the same period last year, primarily due to supply disruptions from the Middle East. However, both companies exceeded analysts’ forecasts and anticipate further profit growth throughout the year, as oil prices remain significantly higher than at the conflict’s outset.
2. Big banks
Several major banks have also seen their profits increase during the conflict in Iran. JP Morgan’s trading division generated a record $11.6 billion in revenue during the first three months of 2026, contributing to the bank’s second-highest ever quarterly profit. Across the remaining “Big Six” banks—including Bank of America, Morgan Stanley, Citigroup, Goldman Sachs, and Wells Fargo, in addition to JP Morgan—profits all rose substantially in the first quarter of the year. Collectively, these banks reported $47.7 billion in profits for the first three months of 2026. “Heavy trading volumes have particularly benefited investment banks like Morgan Stanley and Goldman Sachs,” noted Susannah Streeter, chief investment strategist at Wealth Club. Major Wall Street lenders have seen a boost from increased trading demand, as investors move away from riskier stocks and bonds, opting instead for safer assets. Trading volumes have also been elevated by investors looking to capitalize on financial market volatility. Streeter added, “The volatility unleashed by the conflict has led to a surge in trading, with some investors selling stocks due to escalation fears, while others bought during dips, contributing to a recovery rally.”
3. Defence
According to Emily Sawicz, senior analyst at RSM UK, the defense sector is among the most immediate beneficiaries of any conflict. She informed the BBC that “The conflict has highlighted deficiencies in air defense capabilities, accelerating investment in missile defense, counter-drone systems, and military hardware across Europe and the US.” Beyond underscoring the importance of defense firms, the conflict necessitates governments replenishing weapons stockpiles, thereby increasing demand. BAE Systems, a manufacturer of products including F35 fighter jet components, announced in a Thursday trading update that it anticipates strong growth in sales and profits this year. The company cited increasing “security threats” globally as a driver for higher government defense spending, creating a “supportive backdrop” for its business. Lockheed Martin, Boeing, and Northrop Grumman, three of the world’s largest defense contractors, each reported record order backlogs at the end of the first quarter of 2026. However, shares in defense firms, despite significant gains in recent years, have declined since mid-March amidst concerns of overvaluation.
4. Renewables
The conflict has also underscored the necessity of diversifying away from fossil fuel reliance, Streeter observed. She noted that this has “supercharged interest in the renewable sector,” even in the US, where the Trump administration popularized the “drill, baby, drill” slogan advocating for increased fossil fuel use. Streeter stated that the conflict has elevated the perception of renewable investment as crucial for stability and resilience against shocks. Florida-based NextEra Energy is one company that has benefited, with its shares surging by 17% this year as investors support its initiatives. Danish wind power giants Vestas and Orsted have also reported surging profits, demonstrating how the repercussions of the Iran conflict are also benefiting renewable energy companies. In the UK, Octopus Energy recently informed the BBC that the conflict had caused a “significant surge” in solar panel and heat pump sales, with solar panel sales increasing by 50% since the end of February. The rise in petrol prices has also spurred demand for electric vehicles, with Chinese manufacturers particularly capitalizing on this opportunity.
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