Iran war: Oil company TotalEnergies promises record results

This message should confirm the supporters of an excess profits tax: The French oil company TotalEnergies is expecting a massive jump in profits in the third quarter due to the Iran war.

The refining margin is expected to have almost quadrupled compared to the previous year, the company said. TotalEnergies expects a margin of $33.2 per barrel for the past quarter, after $8.4 per barrel in the same period last year.

The company also recorded “above-average development” in gas and liquid gas trading.

Stock prices are rising sharply

With an increase of almost 46 percent, TotalEnergies shares are one of the biggest winners among European standard stocks so far this year. The shares of other oil companies such as BP, Eni and Shell also rose sharply this year.

The US and Israel's war with Iran has led to the virtual closure of the Strait of Hormuz, which is important for oil transport. This has disrupted global supplies and pushed crude oil and gas prices to multi-year highs, generating big profits for major energy companies.

Greenpeace advocates a tax on corporations' excess profits. With such a tax, the state can partially recoup the corporations' abundant profits. However, an excess profits tax does not directly reduce prices for consumers. Proponents are hoping for an indirect effect - that the incentive for fuel companies to raise prices too high will be reduced.