Global Tensions Fuel Oil Profits, Hormuz Blockade Tightens

The ongoing conflict and blockade in the Middle East are directly fueling strong first-quarter earnings for international oil majors and tightening global supply, according to reports. French supermajor TotalEnergies reported a 29% year-over-year jump in adjusted net income to $5.4 billion for Q1 2026, according to OilPrice.com.

The company attributed the surge to higher oil prices and "very strong oil trading results in the wake of the Iran war." TotalEnergies' Exploration & Production division saw adjusted net operating income rise 43% quarter-to-quarter to $2.6 billion. Despite the Middle East conflict shutting in about 100,000 barrels of oil equivalent per day (boe/d) of its production, start-ups in Brazil and Libya helped maintain output at 2.553 million boe/d. In response to strong cash flow, TotalEnergies' board raised its interim dividend by 5.9% and authorized $1.5 billion in share buybacks for Q2.

Meanwhile, the U.S. is intensifying pressure on Iran, aiming to choke off its oil exports. U.S. Treasury Secretary Scott Bessent stated on social media that the U.S. naval blockade outside the Strait of Hormuz is forcing Iran's primary export terminal, Kharg Island, toward storage capacity, according to OilPrice.com. Bessent claimed this would force production shut-ins, costing Iran approximately $170 million daily in lost revenue.

President Donald Trump has instructed aides to prepare for an extended blockade, preferring this method over renewed bombing or disengagement, U.S. officials told the Wall Street Journal. Satellite imagery shows at least six Iranian oil tankers clustered near Chabahar port, inside the U.S. blockade line, indicating exports are being delayed or blocked.

These developments underscore the geopolitical risk premium supporting global oil prices, a key factor for Bakken producers. The market disruption cited by TotalEnergies and the active U.S. blockade are contributors to the volatile, elevated price environment that defines current operations.