What drove Phillips 66's record second-quarter profit, and how did the Iran war impact its refining margins?

Phillips 66's record second-quarter profit was driven by a nearly fourfold jump in net income to $3.85 billion—its strongest quarterly profit since 2022—fueled by soaring U.S. refining margins amid the Iran war. The conflict squeezed global fuel supplies, prompting international buyers to scramble for alternative sources and pushing U.S. fuel exports, especially diesel, to record highs; as a result, Phillips 66's refining segment adjusted earnings surged to $3.09 billion from $392 million a year earlier, and its realized margin more than doubled to $24.08 per barrel.

How did Phillips 66's renewable fuels segment perform in Q2, and what factors contributed to its turnaround?

Phillips 66's renewable fuel segment posted an adjusted profit of $544 million in Q2, reversing a $133 million loss from the same period last year. This turnaround was attributed to stronger returns after years of margin pressure, aided by a recent increase in biofuel blending mandates and higher diesel prices linked to the Middle East conflict.

Phillips 66 beats quarterly estimates as Iran war boosts US refining margins

Aug 5, 2026

Phillips 66's Q2 profit surged nearly fourfold to $3.85 billion as Middle East tensions boosted U.S. refining margins and fuel exports. Major rivals similarly reported record earnings since 2022 amidst supply disruptions.

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Phillips 66 beats quarterly estimates as Iran war boosts US refining margins

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