Iran war delivers massive windfall to commodity trading giants

Two leading commodity trading houses have reported a sharp surge in profits as the war in Iran has disrupted global energy markets and created lucrative opportunities for traders willing to navigate heightened volatility and supply risks.

Mercuria Energy Group’s profits for the nine months through June jumped 122% year-on-year to $2.01 billion, while Gunvor Group reported a 644% increase in net profit to $909 million for the first half of the year, Bloomberg reports.

The results underscore how physical commodity traders have emerged among the major beneficiaries of market upheaval caused by the conflict, which has triggered significant price dislocations and reshaped global energy trade flows. The disruption has also created opportunities for companies prepared to take on the risks associated with transporting oil through the Strait of Hormuz.

“Performance was supported by heightened volatility and the significant reshaping of global energy trade flows following the escalation of geopolitical tensions in the Middle East,” Gunvor said in commentary accompanying its results. “These market dislocations created attractive arbitrage opportunities for Gunvor.”

Gunvor’s first-half profit was among its strongest results in the company’s history, exceeding its earnings in all but three full years and putting it on track for annual profit potentially approaching its record $2.36 billion in 2022.

Mercuria’s $2.01 billion nine-month profit also ranks among its best-ever results. A comparison of its nine-month and half-year figures suggests the company generated nearly $1 billion in profit during the three months through June.

Mercuria has additionally benefited from tighter copper markets, as increased shipments of the metal to the United States have squeezed global supplies.

Both companies have opted to retain much of their increased earnings rather than distribute them through large dividends. Gunvor said it did not pay a dividend during the first half and “will not pay a dividend in 2026” as it rebuilds equity following a more than $1 billion payment to co-founder Torbjörn Törnqvist.

Mercuria’s equity increased 33% over the nine-month period to $8.06 billion as it expands into metals and liquefied natural gas.

Other major commodity traders have also reported strong performances. Glencore posted one of its strongest-ever half-year trading results, while Trafigura earned $4.09 billion in the six months through March, putting it on track for record annual profits.

By Vafa Guliyeva