French energy giant TotalEnergies is reported to have earned more than $1 billion in profit after aggressively trading Middle Eastern crude oil during disruptions caused by the ongoing Iran conflict. According to reports, the company purchased around 70 cargoes of crude oil from the United Arab Emirates and Oman for May delivery, more than doubling its buying activity compared to February. The surge in trading came as the conflict disrupted shipping through the Strait of Hormuz, tightening global supply.
TotalEnergies has not publicly confirmed the profit figures and declined to comment on its trading activities.
The opportunity emerged after a disruption in the pricing mechanism for Middle Eastern oil. S&P Global Platts suspended nominations of crude grades requiring transit through the Strait of Hormuz earlier this month due to safety concerns, removing a significant portion of supply from the benchmark.
With fewer crude grades available, the market became less liquid and more vulnerable to large players. TotalEnergies capitalised on this gap, securing enough contracts to dominate trading activity during March.
Oil prices have surged sharply since the conflict began. Dubai crude rose from around $70 per barrel to a record high of nearly $170, while Brent crude peaked near $120 before stabilising slightly.
TotalEnergies CEO Patrick Pouyanné described current refining margins as unprecedented and said the oil market remains “dislocated.” He also warned that prolonged conflict could push European natural gas prices significantly higher in the coming months.
The company has faced operational challenges as well, with production disruptions reported in Qatar, Iraq, and offshore UAE, affecting a portion of its global output. However, rising oil prices have helped offset these losses.
Meanwhile, the sharp increase in crude prices has put pressure on Asian refiners, with some reportedly seeking alternative pricing benchmarks to manage costs.
