US-Iran Conflict: Companies Profit Trillions Amid Rising Cost of Living

The global community is grappling with the significant economic repercussions of the US-Israel war in Iran. Yet, amidst this complex and challenging landscape, a select group of companies is unexpectedly reaping billions of dollars, equivalent to trillions of Indonesian Rupiah.

The escalating conflict in Iran has ignited widespread uncertainty, a situation further exacerbated by the critical closure of the Strait of Hormuz. This instability has directly triggered a dramatic surge in the cost of living and significantly intensified the financial burden across various sectors, impacting everyone from ordinary citizens to national governments.

However, while many struggle simply to stay afloat, certain corporations are achieving record revenues. This phenomenon is largely due to their core businesses becoming substantially more profitable during wartime conditions or periods of extreme energy price fluctuations.

The following outlines several key sectors and companies that have generated billions of dollars—or trillions of Indonesian Rupiah—as the Middle East conflict continues.

1. Oil and Gas

The most profound economic consequence of the war to date has been the dramatic surge in energy prices. Approximately one-fifth of the world’s oil and gas typically transits through the Strait of Hormuz. However, this critical shipping lane effectively came to a complete halt by the end of February.

This disruption unleashed extraordinary price volatility in the energy markets, a scenario that has proven highly advantageous for some of the world’s largest oil and gas companies.

The primary beneficiaries are major European oil giants with robust trading divisions. These specialized units have skillfully capitalized on sharp price movements, significantly boosting their companies’ overall profits.

BP’s profits more than doubled to US$3.2 billion (Rp55.87 trillion) for the first three months of this year, a remarkable achievement attributed to the “exceptional performance” of its trading division.

Similarly, Shell surpassed analyst expectations, reporting a first-quarter profit increase to US$6.92 billion (Rp120.82 trillion).

Another international heavyweight, TotalEnergies, saw its profits soar by nearly one-third to US$5.4 billion (Rp94.2 trillion) in the first quarter of 2026. This impressive growth was primarily driven by the extreme volatility observed in the oil and broader energy markets.

While major US corporations like ExxonMobil and Chevron experienced a slight dip in revenues compared to the same period last year due to supply disruptions from the Middle East, their performance still exceeded analyst forecasts. Both companies project continued profit growth throughout the year, anticipating that oil prices will remain significantly higher than at the war’s onset.

2. Major Banks

The heavyweight banking sector has also registered substantial profit increases during the ongoing conflict in Iran.

JP Morgan’s trading division achieved a record revenue of US$11.6 billion (Rp202.5 trillion) in the first three months of 2026, marking the bank’s second-largest quarterly profit in its history.

This positive trend was mirrored across other prominent Wall Street institutions, including Bank of America, Morgan Stanley, Citigroup, Goldman Sachs, and Wells Fargo, in addition to JP Morgan. All these major banks reported significant profit increases in the first quarter of this year.

Collectively, this group of banks declared a combined profit totaling US$47.7 billion (Rp832.84 trillion) for the first three months of 2026.

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“High trading volumes have particularly benefited investment banks, notably Morgan Stanley and Goldman Sachs,” stated Susannah Streeter, head of investment strategy at Wealth Club.

Furthermore, these Wall Street banks capitalized on elevated demand for trading activities. During periods of conflict, investors typically divest from high-risk stocks and bonds, opting instead to secure their capital in assets perceived as safer havens.

Trading volumes also surged as some investors actively sought to exploit the pronounced volatility within financial markets.

“The volatility triggered by the war has led to a spike in trading. Some investors sold shares due to fears of conflict escalation, while others bought during price dips. This dynamic ultimately helped fuel a recovery rally in the markets,” Streeter added.

3. Defense

Emily Sawicz, Senior Analyst at RSM UK, observes that the defense sector invariably emerges as one of the swiftest beneficiaries in any conflict.

“This conflict has underscored existing gaps in air defense capabilities, thereby accelerating investment in missile defense, anti-drone systems, and general military hardware across both Europe and the US,” she informed the BBC.

Beyond highlighting the crucial role of defense companies, the war has also generated new requirements for governments worldwide. This situation compels nations to replenish their arsenals, leading to a significant surge in demand for companies operating within this sector.

BAE Systems, a key manufacturer of components for F-35 fighter jets, released its trading update last Thursday (07/05).

The company projects substantial growth in both sales and profits for the current year.

According to BAE Systems, the escalating “security threats” globally are driving increased government defense spending, which in turn creates “favorable conditions” for the company’s business operations.

The world’s three largest defense contractors—Lockheed Martin, Boeing, and Northrop Grumman—each reported record order backlogs at the close of the first quarter of 2026.

However, defense company stock prices have seen a decline since mid-March, despite having risen sharply in recent years. This downturn is occurring amid market concerns that the sector may be overvalued.

4. Renewable Energy

The US-Israel and Iran conflict has also underscored the imperative of energy diversification. Nations urgently need to reduce their reliance on fossil fuels, Streeter emphasized.

She noted that this situation has “accelerated interest in the renewable energy sector.” Its impact is even felt in the US, despite the Trump administration’s vigorous promotion of the “drill, baby, drill” slogan to encourage greater fossil fuel utilization.

Streeter asserted that the war has elevated renewable energy investment to a critical level. This sector is now widely regarded as essential for economic stability and resilience against geopolitical shocks.

One company benefiting from this trend is Florida-based NextEra Energy, which has seen its stock value surge by 17% this year. This growth is partly attributed to a rush of investors pouring capital into the company.

Major Danish wind power companies, Vestas and Orsted, have also reported a significant increase in profits. This phenomenon illustrates how the ramifications of the Iran conflict are propelling the performance of renewable energy companies.

In the UK, Octopus Energy recently informed the BBC that the war has triggered a “massive surge” in sales of solar panels and heat pumps. The company’s solar panel sales alone have jumped by up to 50% since late February.

The spike in petrol prices has simultaneously boosted demand for electric vehicles. This golden opportunity has been shrewdly seized by automotive manufacturers, particularly those from China, enabling them to capture a greater share of the global market.

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