As US-Iran fighting lifts gas prices, Big Oil banks $30 million an hour in excess profits

Americans are once again feeling a familiar squeeze at the pump as renewed fighting involving the U.S. and Iran drives oil prices higher and household budgets take the hit.

But while drivers pay more for gas, the world's biggest oil and gas companies are collecting massive windfalls.

What's happening?

During the first days of the latest U.S.-Iran conflict, the 100 largest oil and gas companies in the world were generating roughly $30 million per hour in excess profits, according to NPR, citing an analysis from Global Witness and The Guardian.

Dominic Eagleton, a fossil fuel researcher at Global Witness, explained the reason for the surge, saying: "That's as a direct result of oil prices spiking globally."

According to NPR, consumer oil prices have risen far faster than production costs for many companies. Citing Global Witness, NPR said the six largest European oil companies made at least $22 billion in the first quarter of 2026, which was 43% higher than a year earlier.

Those profits have added new momentum to windfall-tax proposals in Washington. In March, Democratic Sen. Sheldon Whitehouse of Rhode Island and Democratic Rep. Ro Khanna of California reintroduced a bill that would allow companies to keep half of unexpected war-related oil profits and send the other half to lower-income Americans through tax rebates.

Why does it matter?

When oil shocks unnecessarily drive up gas prices, families tend to feel the impact quickly through commuting costs, delivery fees, and the price of everyday goods. A windfall for producers can mean tighter budgets for everyone else, especially lower-income households, who have the least flexibility when fuel and energy prices surge. While most Americans are struggling, oil companies are enjoying massive profits. 

Oil, coal, and natural gas power plants also contribute to air and water pollution linked to asthma, heart disease, cancer, and premature death.

Households that rely heavily on these fuel sources can also remain exposed to higher, more volatile energy costs than systems powered by more abundant resources such as sunlight and wind. Critics argue that fossil fuel industry lobbying has also slowed the rollout of cleaner, cheaper energy options that could better shield families from these price spikes.

When oil and gas dominate the energy system, global conflict can ripple straight into monthly bills.

What's being done?

Whitehouse's plan would measure excess profits against prewar oil-price averages, with half of that difference going into a rebate fund and half remaining with the companies. As Whitehouse put it: "We're actually somewhat generous about letting [the oil companies] keep half of the excess profits, but we want at least half of it to go back."

Supporters also point to what happened in Europe. NPR reported that the U.K. adopted a windfall tax on oil profits after Russia invaded Ukraine in 2022, and Eagleton said it had raised more than $12 billion by the end of fiscal year 2025. Over two years, the European Union's temporary version generated nearly $30 billion.

The oil industry is pushing back. Dustin Meyer of the American Petroleum Institute, identified in NPR's report as a senior vice president, told NPR: "For investment in any industry, you need certainty. And proposals like this erode exactly the sort of certainty that is needed to make the investment that has brought the United States to such an unparalleled position of American energy leadership."

Whitehouse acknowledged that the bill faces "an uphill struggle," though he also framed the moment as a reminder: "Wind, solar, and battery power — they're not raising their prices."

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