We can tell you who will really get rich from this oil crisis and how we can stop them | Isabella Weber and Gregor Semieniuk

"Shipping through the narrow passage has come to a near halt. Already, crude oil prices have shot to above $100 per barrel, up from $60 a barrel at the beginning of the year, while gasoline prices are jumping and airlines are announcing price hikes. Governments of oil-importing countries are scrambling to contain the fallout, announcing measures ranging from shorter work weeks to conserve fuel to price regulations."

"In 2022, net income of publicly listed oil and gas companies reached $916bn globally—a figure more than three times that of the preceding years (even excluding 2020). The US was the single largest beneficiary: US-headquartered companies captured $281bn. This exceeded American investments in the entire low-carbon economy that year ($267bn)."

"Whether firms will see a similar windfall from the Iran shock depends on how long the war lasts, and how high oil and other raw material prices go. But with Brent above $100 a barrel—a level that has already proven, in 2022, to generate record profits—the trajectory is clear."

The Strait of Hormuz has become critical to global economics as Middle East conflict disrupts shipping and drives crude oil prices from $60 to over $100 per barrel. This creates cascading effects: gasoline prices rise, airlines increase fares, and governments implement fuel conservation measures. The 2022 Russia-Ukraine crisis provides a precedent, when oil and gas companies earned $916 billion globally—three times normal years. US companies captured $281 billion alone, exceeding American low-carbon investments. European companies also saw substantial profit increases. Current conditions suggest similar windfall profits for oil firms, raising questions about wealth distribution during supply shocks and the need for policy interventions to prevent excessive profiteering.

Read at www.theguardian.com