The US-Israel war with Iran has delivered bumper profits for major oil, banking and defense companies, even as the conflict and Iran’s effective closure of the Strait of Hormuz drive up costs for households, governments and businesses worldwide, the BBC reported.
The largest gains have come in energy markets, where disruption to shipments through the Strait of Hormuz, a route for about a fifth of the world’s oil and gas, has sent prices swinging sharply.
European oil majors have benefited most because of their large trading arms, which profit from volatility.
BP’s first-quarter profits more than doubled to $3.2 billion after what it called an “exceptional” performance in trading, while Shell reported profits of $6.92 billion and TotalEnergies posted a nearly one-third rise to $5.4 billion.
US oil giants ExxonMobil and Chevron reported lower earnings than a year earlier because of supply disruptions from the Middle East, but both still beat analysts’ forecasts and expect stronger profits as oil prices remain well above prewar levels.
Major banks have also gained from market turbulence caused by the Iran war.
JP Morgan’s trading arm reported a record $11.6 billion in revenue in the first quarter, helping deliver the bank’s second-biggest quarterly profit. Across the six largest US banks, profits reached $47.7 billion in the first three months of 2026.
Defense companies have also benefited as the war pushes governments to restock weapons and expand investment in air defense, missile defense, counter-drone systems and other military hardware.
BAE Systems – a major British supplier of fighter jet components, naval systems and military technology – said it expects strong sales and profit growth this year, citing rising global security threats and increased defense spending. Lockheed Martin, Boeing and Northrop Grumman each reported record order backlogs at the end of the first quarter.
The war has also boosted parts of the renewable energy sector, as higher fuel prices and energy insecurity accelerate interest in alternatives.
NextEra Energy shares have risen 17% this year, while Vestas and Orsted reported stronger profits. In the UK, Octopus Energy said solar panel sales had risen 50% since the end of February.
The facility, including a power substation and an alloy steel production line, was hit twice during Israeli-US attacks earlier this year, causing major disruptions to production and operations at the complex.
The report said only about 2,000 employees – mainly management and administrative staff – have returned to the site since the attacks during the war involving Iran, the US and Israel that began in late February.
Many workers have reported a sharp drop in income. Specialized technical staff who previously earned more than 100 million tomans a month – about 1 billion rials, or roughly $568 – are now receiving wages close to the legal minimum, around one-fifth of their previous pay, according to the report.
The pay cuts come as management seeks state support and unemployment insurance. Workers told Rouydad24 they fear these reduced wage calculations will permanently lower their future insurance benefits if formal mass layoffs are eventually finalized.
From steel production to the gig economy
With production lines largely inactive, a labor exodus is underway. Many former steelworkers in Isfahan have turned to driving for ride-hailing platforms to survive, while others have migrated to factories in Yazd and Khorasan provinces in search of steady work.
The uncertainty has triggered a surge in online job-seeking channels specifically for former Mobarakeh project workers. This shift highlights a deepening labor crisis in a sector that was already struggling with skilled worker emigration before the conflict began.
Mobarakeh Steel is one of Iran’s most strategic and profitable assets, and experts warn the fallout could destabilize the broader economy. Current estimates suggest it will take at least four years for the facility to return to its pre-war operating capacity.
While the head of the government’s information office insists that salaries for over 30,000 workers are being paid in full, the company’s own public relations office was more cautious, telling Rouydad24 that while they could not confirm specific allegations, "war conditions naturally change everything."
The report said small Chinese firms were openly marketing items including engines, batteries, fiber-optic cables and computer chips that can be used in military drones.
The newspaper highlighted Xiamen Victory Technology, a Chinese company that offered to sell German-designed Limbach L550 engines, which the US has barred from export to Iran and Russia. The engines have been linked to Iran’s Shahed-136 attack drones, which Russia has used in Ukraine, the report said.
The Shahed-136, Iran’s main attack drone, has a range of about 1,000 miles and costs an estimated $20,000 to $50,000 to produce, making it a cheaper alternative to cruise missiles.
According to the Journal, the company sent the marketing email in March during the Iran-Israel war that began in February and has since moved into a ceasefire.
“We are deeply shocked and outraged by the aggression against Iran, and our hearts are with you,” the email said, while promoting the sale of the engines.
Chinese firms adapt to sanctions
China’s Foreign Ministry told the Journal that Beijing enforces controls on dual-use exports in line with its laws and international obligations.
The report said US officials are increasingly concerned because many drone parts are now made in China by smaller firms that have limited exposure to the US financial system and are less vulnerable to sanctions.
The Journal also said Chinese exports of lithium-ion batteries and fiber-optic cables to Russia and Iran rose sharply as both countries expanded drone production and use.
US officials told the newspaper they are also trying to curb Iran’s oil revenue to limit funding for drone and missile programs.
The Wall Street Journal reported that some Chinese firms previously hid shipments through mislabeled cargo or Hong Kong shell companies, but analysts and former officials said some exporters are now acting more openly.
“They have to have guns. And I think they’re getting some guns. As soon as they have guns, they’ll fight like, as good as anybody there is,” Trump said in an interview with The Hugh Hewitt Show.
Trump also suggested that US military pressure had already significantly weakened Iran and that further action could be completed within a short timeframe.
“We’ve taken out much of what we’d have to do, probably another two weeks, two weeks, maybe three weeks,” he said.
Trump said large numbers of Iranians would struggle to confront armed forces without access to weapons.
“You can’t have an unarmed population against people with AK-47s,” he said, adding that even hundreds of thousands of protesters would struggle against a smaller armed force.
He said previous protests had been met with heavy force, citing the deaths of tens of thousands of demonstrators, and suggested this had made him cautious about encouraging renewed unrest.
“I’m very torn on it, because they lost 42,000 people in the first two weeks. I don’t really want to see that,” Trump said.
Past weapons transfers
Trump said during a phone interview with Fox Sunday in early April that his administration had previously attempted to send firearms to Iranian protesters but that the effort did not reach its intended recipients.
“We sent guns to the protesters, a lot of them. We sent them through the Kurds. And I think the Kurds took the guns,” he said.
He repeated similar complaints, saying he was “very upset with a certain group of people” and warning they would “pay a big price.”
Several Kurdish groups have denied receiving such shipments.
Calls in Washington to arm Iranians
Republican Senator Lindsey Graham has also urged the administration to pursue a policy of directly arming Iranian civilians.
“If I were President Trump and I were Israel, I would load the Iranian people up with weapons so they can go to the streets armed and turn the tide of battle inside Iran,” Graham said in an interview with Fox News on Monday.
“We don’t need American boots on the ground. We’ve got millions of boots on the ground in Iran. They just don’t have any weapons,” he added.
Graham described the idea as “a Second Amendment solution,” suggesting that arming civilians could help bring down the government without direct foreign military involvement.
He also called for alternative channels to deliver weapons, urging the administration not to rely on Kurdish intermediaries.
Military pressure and internal divisions
Trump framed his comments within a broader assessment that Iran’s military and economic capacity had been significantly weakened.
“They have no navy. They have no air force. They have no anti-aircraft,” he told The Hugh Hewitt Show.
Trump added that financial pressure may have affected the government’s ability to pay its forces.
“We don’t think they’re paying their soldiers and their Guard anymore,” he said.
He also suggested divisions within Iran’s security structure, drawing a distinction between the regular army and other forces.
“We purposefully have not gone after them too much, because we think that they’re much more moderate,” Trump said.
At the same time, he said the United States was not seeking to dismantle the country’s military institutions entirely.
“We’re not looking to decimate the army,” he said, referring to past regional experiences.
“You know, when they did Iraq... and the worst thing was they got rid of the all the leaders, so nobody knew who the leader was. And then all of a sudden, you had ISIS. We don’t want to do that.”
Nuclear focus remains central
Despite discussing internal unrest, Trump said that preventing Iran from acquiring nuclear weapons remains the central objective of US policy.
“The one thing I will say is they will never have a nuclear weapon,” he said.
Trump said any potential agreement would require the return of highly enriched uranium and limits on missile development, though he stressed that nuclear restrictions remain the priority.
