Thekabarnews.com—Some of the world’s largest corporations are announcing record profits as the US-Israel conflict with Iran causes war-induced volatility. This volatility changes the energy, finance, and defense markets. Meanwhile, households around the world grapple with the rising cost of living.

The existing tensions, combined with Iran’s successful disruption of shipping through the Strait of Hormuz, have significantly increased the prices of oil and gas. As a result, this situation increases the pressure on governments, businesses, and consumers globally.

Typically, nearly one-fifth of the global oil and gas supply passes through the Strait of Hormuz. Therefore, any disruption is a significant shock for world markets.

The world’s major oil companies swiftly capitalized on the escalating energy prices.

BP reported its profit in the first quarter of 2026 more than doubled to $3.2 billion. An “exceptional” performance in its trading division helped, as the oil giant reported strong results.

Shell also beat expectations of analysts, reporting quarterly profits of $6.92 billion. Meanwhile, TotalEnergies said it earned a profit of US$5.4 billion, up nearly a third, in the same period.

Analysts say that big European oil companies’ large trading operations allowed them to profit enormously from big swings in the price of energy. These swings have occurred around the world.

Big U.S. energy firms, including ExxonMobil and Chevron Corporation, reported lower profits than a year ago on supply problems. However, both topped market expectations and expect stronger profits as high oil prices continue.

The banking sector also made significant gains. JPMorgan Chase’s trading division generated a record $11.6 billion in revenue in the first quarter of 2026. This helped the bank report its second-largest quarterly profit on record.

The “Big Six” banks on Wall Street—Bank of America, Morgan Stanley, Citigroup, Goldman Sachs, and Wells Fargo—made a combined $47.7 billion profit in the first three months of 2026.

“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,” said Susannah Streeter, chief investment strategist at Wealth Club, as quoted in BBC.

Defense companies also became major beneficiaries.

“The conflict has reinforced gaps in air defense capability, accelerating investment in missile defense, counter-drone systems, and military hardware across Europe and the US,” said Emily Sawicz, senior analyst at RSM UK.

BAE Systems, which makes parts for the F-35 fighter jet, said it foresees strong sales and profit growth this year. Governments are boosting defense spending amid rising global security threats.

Major U.S. defense contractors, including Lockheed Martin, Boeing, and Northrop Grumman, also reported record order backlogs by the end of the first quarter.

The war has at the same time stimulated interest in renewable energy. Governments and investors now seek alternatives to reliance on fossil fuels.

NextEra Energy shares are up 17% this year. Danish wind energy giants Vestas and Ørsted also had strong profit growth.

The war has also pushed up sales of solar panels, heat pumps, and electric vehicles. Consumers try to shield themselves from rising fuel costs.

Ordinary families are facing higher costs. Meanwhile, some of the world’s largest corporations are capitalizing on geopolitical instability to achieve some of their best earnings in years.

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