The companies making billions from the Iran war

The companies making billions from the Iran – As global households bear the brunt of rising expenses tied to the US-Israel conflict in Iran, a select group of corporations have turned the situation into a financial opportunity. The disruption caused by the war has triggered a surge in energy prices, creating unexpected windfalls for companies that thrive in times of instability. While governments and families face tighter budgets, others have capitalized on the turmoil, with their profits soaring amid volatile markets.

Energy Sector Surges

The conflict’s uncertainty, particularly Iran’s blockade of the Strait of Hormuz, has disrupted supply chains and sent shockwaves through the energy sector. This strategic chokepoint, which handles roughly 20% of the world’s oil and gas, saw its traffic nearly halt in late February. The resulting fluctuations in energy prices have not only heightened inflationary pressures but also opened the door for certain firms to reap significant rewards. European oil giants, for instance, have leveraged their trading divisions to capture sharp increases in demand and profitability.

“Heavy trading volumes have benefited investment banks, in particular Morgan Stanley and Goldman Sachs,” Susannah Streeter, chief investment strategist at Wealth Club, said.

BP, one of the UK’s leading energy firms, reported a notable rise in profits, surpassing $3.2 billion in the first three months of 2026. The company attributed this to an “exceptional” performance in its trading operations. Similarly, Shell exceeded market expectations, with its first-quarter earnings climbing to $6.92 billion. TotalEnergies, a major international player, also saw a nearly 30% increase in profits, reaching $5.4 billion, driven by the chaos in oil markets. In contrast, US-based ExxonMobil and Chevron experienced declines in earnings compared to the same period in 2025, though both exceeded analyst forecasts. Their profits are expected to rebound as oil prices remain elevated.

Banking Giants Benefit

Financial institutions have also found themselves in a profitable position due to the war. JP Morgan’s trading arm achieved a record $11.6 billion in revenue during the first quarter of 2026, contributing to the bank’s second-largest quarterly profit in its history. The “Big Six” banks—comprising Bank of America, Morgan Stanley, Citigroup, Goldman Sachs, Wells Fargo, and JP Morgan—reported substantial gains, with total profits reaching $47.7 billion for the period. This surge reflects heightened investor activity, as markets become more unpredictable.

“The volatility unleashed by the war has led to a surge in trading, as some investors sold stocks on fears of escalation, while others bought the dip, helping to fuel a recovery rally,” Susannah Streeter added.

Investors, seeking safety amid geopolitical risks, have shifted their portfolios toward more stable assets, boosting trading volumes. This trend has particularly favored investment banks, with Morgan Stanley and Goldman Sachs leading the charge. The increased demand for risk management and short-term gains has created a dynamic environment, where firms like JP Morgan capitalize on the chaos. However, the sector’s sharp rise in share prices has recently cooled, with concerns emerging about overvaluation.

Defense Industry Thrives Amid Rising Threats

The war has underscored the critical role of defense firms, as governments ramp up spending to secure their borders and reinforce military capabilities. Emily Sawicz, a senior analyst at RSM UK, noted that the conflict has exposed gaps in air defense systems, prompting accelerated investments in missile technology, counter-drone systems, and military equipment. This demand has been a lifeline for companies operating in the defense sector, with many experiencing growth in sales and profits.

BAE Systems, a key player in aerospace and defense, highlighted “growing security threats” as a driving force behind increased government contracts. The firm’s recent trading update indicated strong performance this year, citing a supportive market environment. Meanwhile, major defense contractors such as Lockheed Martin, Boeing, and Northrop Grumman reported record order backlogs at the end of the first quarter of 2026. These backlogs signal sustained interest in military spending, even as the conflict continues to unfold.

Despite their recent gains, defense shares have dipped since mid-March, raising questions about market saturation. Analysts suggest that while the sector remains resilient, investors are cautious about overpriced equities. Nevertheless, the ongoing war has cemented the importance of these firms, with governments prioritizing defense modernization to counter emerging threats.

Shift Toward Renewable Energy Gains Momentum

Amid the fossil fuel-driven turmoil, the conflict has inadvertently spotlighted the need for energy diversification. Susannah Streeter pointed out that the war has “supercharged interest in the renewable sector,” even in the US, where the Trump administration’s “drill, baby, drill” mantra has traditionally favored oil production. This shift reflects a growing recognition of the vulnerabilities in relying heavily on traditional energy sources.

As energy markets remain volatile, the renewable sector is attracting more attention. Investors are increasingly allocating funds to sustainable alternatives, driven by both economic incentives and environmental concerns. The war has acted as a catalyst, pushing governments and businesses to explore long-term energy solutions. While fossil fuel prices continue to climb, the push for renewables signals a broader transformation in how energy is sourced and consumed.

For companies operating in the energy and financial sectors, the Iran war has been a double-edged sword. On one hand, it has created opportunities for profit through price volatility and increased demand. On the other, it has exposed risks for those reliant on stable markets. As the conflict evolves, the question remains: which sectors will continue to benefit, and which will struggle to adapt to the shifting landscape? The answer, for now, seems to lie in the hands of those who have positioned themselves to thrive in uncertainty.