Chevron Turned $3.1 Billion Loss Into A Gain In One Quarter Amid ‘Heightened Volatility’ During Iran War

Aug 07, 2026 01:49 AM - 1 hour ago 1

Topline

Chevron’s commodity derivatives—financial contracts utilized to hedge risks associated pinch lipid shipments—trended upward for the institution successful its latest 4th aft signaling a $3.1 cardinal nonaccomplishment successful the erstwhile 1 amid “heightened volatility” during the Iran war.

Chevron submitted the SEC filing Thursday.

Photo by Brandon Bell/Getty Images

Key Facts

Chevron’s commodity derivatives raked successful $368 cardinal successful the company’s 2nd quarter, a important jump from the $3.1 cardinal nonaccomplishment posted successful its first quarter, according to an SEC filing.

Chevron disclosed $870 cardinal successful separator calls posted arsenic rate collateral successful its first quarter, which dropped to $139 cardinal by the 4th ended June 30 and marked a rate betterment that came arsenic lipid prices dropped from their highs successful March.

A footnote successful the filing’s derivatives conception said “heightened volatility successful commodity prices associated pinch the ongoing conflict successful the Middle East” created ample losses and forced Chevron to salary retired rate to screen its trading accounts.

Chevron banal traded up 1.4% to astir $188 per stock arsenic of Thursday afternoon.

Big Number

$12.1 billion. That was Chevron’s reported nett income successful its latest quarter, acold supra the $2.5 cardinal it reported successful the aforesaid play past year. The fig was driven by accrued accumulation volumes and the Iran war, which sent commodity prices higher.

Tangent

Energy patient Phillips 66 said successful an net telephone Wednesday it became the third-largest buyer of Venezuelan crude oil, benefiting from maritime trading exemptions doled retired by the Trump administration. Phillips 66 was excluded from President Donald Trump’s scrutiny of lipid giants this week, arsenic he has blasted Chevron and Exxon for “making excessively overmuch money” amid the Iran war.

Key Background

Brent crude, 1 of the world pricing benchmarks for crude oil, averaged $81 per tube successful the first 4th and surged to an mean of $92 per tube arsenic fears surged astir the Iran war. Prices for the lipid are up 33% since the commencement of the year, erstwhile the costs for a tube was astir $60. Chevron’s nett short position successful commodity derivatives intends the institution profits erstwhile lipid prices fall. So, arsenic Brent crude surged to good supra the $100 people successful March and April, the institution yet benefited from a driblet down to astir $73 that came successful the nick of clip for its net window. Trump’s anger pinch Chevron and Exxon’s profits travel arsenic state prices stay stubbornly precocious contempt the caller slump successful lipid prices, pinch the president threatening to person the companies “give immoderate of that backmost to the public,” though Trump did not elaborate connected really that could beryllium done.