Texas Oil Companies Benefit as Iran War Disrupts Global Markets

The ongoing conflict between the U.S., Israel, and Iran is driving up profits for Texas oil companies while simultaneously increasing costs for consumers, according to experts tracking the volatile energy markets. As of Tuesday, March 11, 2026, the average price for a gallon of regular gasoline in Texas reached $3.21, a significant increase from $2.55 a month prior. This remains lower than the national average of $3.54.

Impact on Gas Prices and Crude Oil

While Texas, as the nation’s leading oil and gas producer, is somewhat insulated from the most dramatic price surges, drivers can expect to pay more at the pump, particularly during the peak summer travel season. The price of Brent crude, the international benchmark, briefly surged to $119 per barrel early Monday, reaching its highest level since the summer following the Russian invasion of Ukraine. West Texas Intermediate (WTI), produced in the U.S., as well briefly exceeded $119 per barrel.

However, following comments from former President Trump suggesting the war was “very complete,” prices quickly fell to under $90 by the end of the day, demonstrating the market’s sensitivity to geopolitical developments. Prior to the initial air strikes against Iran on February 28, crude oil was trading around $70 per barrel. The conflict has raised fears about the potential closure of the Strait of Hormuz, a critical shipping lane through which approximately 20% of the world’s oil supply travels daily.

Winners and Losers in the Texas Oil Industry

Texas oil companies are poised to benefit from the increased prices. Thomas Weinandy, principal research economist at retail technology platform Upside, noted, “If we’re talking about Texas, this is very good news for the oil industry. Oil companies are certainly the beneficiaries of being able to sell their product at higher prices.” However, he cautioned that these profits translate directly into higher costs for consumers.

Todd Staples, president of the Texas Oil and Gas Association, emphasized the necessitate for stability and predictability for long-term investment. “Our goal is for certainty and stability because in order to plan investment and plan for jobs, you have to have predictability,” Staples said.

Ed Longanecker, president of the Texas Independent Producers and Royalty Owners Association, pointed out that uncertainty surrounding the war’s duration makes accelerating drilling in the Permian Basin a risky proposition, despite its potential to moderate domestic price increases.

Limited Relief from Other Sources

Renewed U.S. Access to oil fields in Venezuela, following the capture of President Nicolás Maduro in January, is unlikely to significantly boost global oil supply. Longanecker explained that Venezuela requires billions of dollars in investment to return production to its 1990s peak, and political uncertainty remains a major obstacle.

The possibility of tapping the U.S. Strategic Petroleum Reserve (SPR), which currently holds 411 million barrels (approximately 30 days of total U.S. Daily production, according to the Department of Energy), was downplayed by Trump, who stated that U.S. Supplies are ample and prices would soon fall.

Looking Ahead

Experts warn that the longer the war continues, the more severe the disruptions to oil and gas prices will become. Weinandy emphasized that even a reopening of the Strait of Hormuz won’t immediately return gas prices to normal levels, stating, “Gas prices go up like a rocket and fall like a feather.”

Disclosure: The Texas Oil & Gas Association has been a financial supporter of The Texas Tribune, a nonprofit, nonpartisan news organization. Financial supporters play no role in the Tribune’s journalism.