The earnings from the energy sector this past week have shown how much the U.S.-Iran war has contributed to the short-term performance of major players in the oil market. Exxon Mobil, Chevron, and Valero Energy reported significant profits due to the war's impact on oil prices, with Exxon’s profits reaching $14.5 billion and Chevron’s net income increasing by nearly 400%.
From April through June, U.S. crude oil futures averaged over $92, a quarterly increase of 27%.
An energy market driven by geopolitics has attracted money into oil and oil industry-related ETFs, but oil prices have been volatile this year, particularly since the war in Iran began.
Investing experts caution that trades based on geopolitics may resemble gambling more than investing.
