Amidst escalating global tensions and the economic fallout from the US-Israel conflict in Iran, which has driven up costs for households and businesses worldwide, several key industries are reporting substantial financial gains. The geopolitical instability, particularly the effective closure of the Strait of Hormuz—a vital global shipping lane—has created significant market volatility, proving exceptionally profitable for certain sectors.

The most immediate and pronounced economic effect of the conflict has been a dramatic surge in energy prices. With approximately one-fifth of the world’s oil and gas shipments typically passing through the Strait of Hormuz, its disruption at the end of February triggered a volatile period in energy markets. European oil giants, leveraging their sophisticated trading divisions, have been primary beneficiaries. BP, for instance, saw its profits more than double to $3.2 billion in the first quarter, citing an “exceptional” trading performance. Shell also surpassed analyst expectations with first-quarter profits reaching $6.92 billion, while TotalEnergies experienced a nearly one-third jump in profits to $5.4 billion, driven by market fluctuations. Meanwhile, U.S. giants ExxonMobil and Chevron, despite reporting a year-over-year decline in earnings due to Middle East supply disruptions, still exceeded analyst forecasts and anticipate further profit growth as oil prices remain elevated compared to pre-conflict levels.

The financial sector has also seen a significant boost, with major banks capitalizing on increased trading activity. JP Morgan’s trading arm generated a record $11.6 billion in revenue during the first three months of the year, contributing to the bank’s second-highest quarterly gains ever. Across the “Big Six” U.S. banks—which include Bank of America, Morgan Stanley, Citigroup, Goldman Sachs, Wells Fargo, and JP Morgan—collective profits for the first quarter of 2026 reached $47.7 billion. This surge was attributed to heavy trading volumes as investors reacted to volatility, shifting funds towards safer assets or seeking to profit from market swings. Concurrently, the defence industry has emerged as a direct beneficiary of the conflict. The hostilities have highlighted existing gaps in air defence capabilities, prompting accelerated investment in missile defence, counter-drone systems, and general military hardware across Europe and the United States. Companies like BAE Systems anticipate strong growth in sales and profits, citing increasing global security threats that drive up government defence spending. Lockheed Martin, Boeing, and Northrop Grumman, among the world’s largest defence contractors, have all reported record order backlogs at the close of the first quarter, though their shares have recently seen a pullback amidst concerns of overvaluation.

Beyond traditional industries, the conflict has also inadvertently bolstered the renewable energy sector by underscoring the critical need to diversify away from fossil fuel reliance. This geopolitical imperative has intensified interest in renewable investments, now seen as crucial for long-term stability and resilience against global shocks. Florida-based NextEra Energy, for example, has seen its shares climb by 17% this year. Danish wind power giants Vestas and Orsted have also reported surging profits, reflecting a broader trend. In the UK, Octopus Energy noted a significant increase in solar panel and heat pump sales, with solar panel sales alone rising by 50% since late February. Furthermore, the spike in petrol prices has stimulated demand for electric vehicles, with Chinese manufacturers notably expanding their market presence.