Oil giants cash in on the US-Iran conflict. Can an EU-wide tax on oil profits ease the energy crisis?
A new report commissioned by Greenpeace Germany found that oil companies earned €36 billion in additional margins from the fallout of the US-Iran conflict between March 1 and October 19. Can Europe tax these profits to help ease rising energy bills?
Since the US-Iran conflict erupted on February 28, Europeans have faced surging energy prices. Greenpeace estimates that oil companies have pocketed an extra €36 billion from diesel and petrol sales since the war, equivalent to €154.4 million daily. While the industry denies profiteering, EU energy ministers are debating an EU-wide tax on these alleged "super" profits.
Oil and gas make up 60% of the EU's total final energy consumption, with renewables gradually replacing fossil fuels in electricity generation, but progress remains slow in other sectors like road transport and heating. Major oil companies are the biggest beneficiaries, with Shell's profits doubling to $10.81 billion in Q4 2026 and TotalEnergies reporting an adjusted net income of $9.1 billion for Q3 2026.
Major fuel markets like Germany, France, Italy, and Spain recorded the highest margins, reaching up to €6.7 billion in Germany alone. While price caps in some EU countries have limited margins, they do not always translate into lower margins. Some suggest an EU-wide tax on oil profits could alleviate the energy crisis, though no decision has been made yet.
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