Brent Crude Nears $89 As Hormuz Stays Disrupted – Exxon, Chevron And Shell Rack Up Record Cash Flow

As passage of oil through the Strait of Hormuz remains shrouded in uncertainty, the world's largest oil companies are stocking up their cash reserves, according to The Kobeissi Letter.

• The Kobeissi Letter said that the top 5 international oil companies, including ExxonMobil, Chevron, Shell, TotalEnergies, and BP, generated almost $70 billion in free cash flow in the second quarter of 2026, the largest amount on record.
• This surpasses the previous peak of about $60 billion that was reached in Q2 2022, during the Russia-Ukraine tensions.
• Meanwhile, last week, the U.S. Department of Energy said that crude oil reserves in the Strategic Petroleum Reserve had fallen below 300 million barrels, reaching their lowest level in more than four decades.

The price of Brent crude oil is rising amid the ongoing U.S.-Iran conflict, catching up to July levels to near about $89 per barrel. 

Even as passage through the Strait of Hormuz remains uncertain, and relations between the two countries remain tense, the world's largest oil companies are stocking up on cash, according to The Kobeissi Letter. The figure was about 600% higher than the prior quarter and above the roughly $60 billion peak recorded in Q2 2022 following Russia’s invasion of Ukraine. 

Big Oil’s Q2 Free Cash Flow Hits Record 

In a post on X, The Kobeissi Letter said, “The world's largest oil companies are now holding a record cash pile: The top 5 international oil companies generated almost ~$70 billion in free cash flow in Q2 2026, the largest amount on record.”

As per the market commentator, this includes ExxonMobil Corp. (XOM), Chevron Corp. (CVX), Shell PLC (SHEL), TotalEnergies (TTE) and BP PLC (BP). 

Oil Majors’ Cash Reserves Climb To 2022 Peaks

The second-quarter cash reserves of the top five oil majors marks an increase of about 600% quarter-over-quarter, The Kobeissi Letter said. 

This surpasses the previous peak of about $60 billion that was reached in Q2 2022, during the Russia-Ukraine tensions.

Meanwhile, net income across the group has also jumped more than 160% year-over-year to $47 billion, the third-largest on record, as per the post. 

“Oil companies are building unprecedented cash piles amid the Iran War,” The Kobeissi Letter said. 

U.S. Crude Stockpiles Plummet Sharply Amid Iran War

The U.S. and Iran have been at war since February of this year, causing a choke in the critical Strait of Hormuz and disrupting oil supplies globally. 

Last week, U.S. Department of Energy data showed that crude oil reserves in the Strategic Petroleum Reserve had fallen below 300 million barrels, reaching their lowest level in more than four decades. The SPR declined by 6.1 million barrels to 298.7 million barrels last week, according to the data. 

“As Trump's war on Iran SQUEEZES global oil supply, the U.S. Strategic Petroleum Reserve reaches critical lows. TRUMP'S WAR OF CHOICE ON IRAN = UNINTENDED CONSEQUENCES = STAY LONG OIL,” economist Steve Hanke said in a post on X. 

Meanwhile, U.S. President Donald Trump said at a rally in New York on Friday that, once the U.S. has defeated Iran, he intends to claim the Strait of Hormuz as “a territory of the United States.”

Iran, meanwhile, has signaled that it will fiercely defend control of the strategic waterway. Major General Hatami said the “sacred Strait of Hormuz” is critical to ending the war and that Iran would defend it with “full force,” according to the Islamic Republic News Agency.

A memorandum of understanding between the U.S. and Iran, intended to contain the escalating conflict, is also due to expire Monday. An extension appears unlikely after both sides have spent weeks accusing the other of violating the agreement.

How Are Oil Stocks Performing?

Oil stocks and exchange-traded funds have climbed since the U.S.-Iran conflict began earlier this year. 

However, on Stocktwits, retail sentiment around USO, XOM, CVX, SHEL, and BP stocks was ‘bearish,’ while it was ‘neutral’ for UCO and TTE. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.<