Archie MitchellEconomic journalist
As households around the world weigh the costs of the US-Israeli war in Iran, some companies are instead counting on windfall profits.
The uncertainty caused by the conflict and the effective closure of the Strait of Hormuz by Iran are driving up the cost of living and straining the budgets of businesses, families and governments.
But while some have been pushed to the brink, others, whose core businesses are more profitable during wartime or who profit from volatile energy prices, have posted record profits.
Here are some of the sectors and companies making billions as the Middle East conflict continues.
1. Oil and gas
The biggest economic impact of the war so far has been rising energy prices. About a fifth of the world’s oil and gas passes through the Strait of Hormuz, but those shipments effectively stopped at the end of February.
The result has been a rollercoaster of price movements in energy markets, with some of the world’s biggest oil and gas companies profiting.
The main beneficiaries have been the European oil giants, who have commercial weapons and have therefore been able to take advantage of sharp price fluctuations, thereby increasing their profits.
Another international giant, TotalEnergies, saw its profits jump by almost a third, to $5.4 billion in the first quarter of 2026, driven by volatility in the oil and energy markets.
US giants ExxonMobil and Chevron saw their profits fall compared to the same period last year due to supply disruptions from the Middle East, but both beat analysts’ forecasts and expect their profits to rise further as the year goes on as the price of oil remains significantly higher than at the start of the war.
2. Big banks
Some of the biggest banks also saw their profits increase during the Iran war.
JP Morgan’s trading arm reported a record $11.6 billion in revenue in the first three months of 2026, helping the bank overall achieve its second-biggest quarterly profit on record.
At the rest of the “big six” banks – which include Bank of America, Morgan Stanley, Citigroup, Goldman Sachs and Wells Fargo, as well as JP Morgan – profits all rose substantially in the first quarter of the year.
In total, banks reported $47.7 billion in profits for the first three months of 2026.
“Strong trading volumes benefited investment banks, particularly Morgan Stanley and Goldman Sachs,” said Susannah Streeter, chief investment strategist at Wealth Club.
Wall Street’s major lenders have been boosted by a surge in trading demand as investors rush to abandon riskier stocks and bonds and invest their cash in assets considered safer. Trading volumes have also been increased by investors seeking to take advantage of financial market volatility.
Streeter added: “The volatility triggered by the war led to a sharp rise in trading, as some investors sold stocks out of fear of an escalation, while others bought on the dip, helping to fuel a recovery.”
3. Defense
One of the most immediate beneficiaries of any conflict is the defense sector, according to Emily Sawicz, senior analyst at RSM UK.
“The conflict has reinforced air defense capability gaps, accelerating investment in missile defense, counter-drone systems and military hardware in Europe and the United States,” she told the BBC.
In addition to underscoring the importance of defense companies, the war forces governments to replenish their weapons stocks, spurring demand.
BAE Systems, which makes products including components for F35 fighter jets, said in a trading update on Thursday that it expects strong sales and profit growth this year.
He cited growing “security threats” across the world that have pushed public defense spending upwards, creating a “favorable environment” for the company.
Lockheed Martin, Boeing and Northrop Grumman, three of the world’s largest defense contractors, each reported having record order books at the end of the first quarter of 2026.
But shares of defense companies, which have risen sharply in recent years, have fallen since mid-March, amid fears of overvaluation of the sector.
4. Renewable energies
The conflict also highlighted the need to diversify and move away from reliance on fossil fuels, Streeter said.
This has “increased interest in the renewable energy sector” even in the United States, she said, where the Trump administration popularized the slogan “drill, baby, drill” encouraging greater use of fossil fuels.
Streeter said the war led to investments in renewable energy being seen as increasingly important for stability and resilience to shocks.
One company that has gotten a boost is Florida-based NextEra Energy, whose shares have jumped 17% so far this year as investors rush to its mission.
Danish wind energy giants Vestas and Orsted also reported rising profits, highlighting how the aftermath of the war in Iran is also boosting renewable energy companies.