In late February 2026 the U.S. benchmark crude price was about $66 a barrel before the U.S. and Israeli attacks on Iran threatened to close the Strait of Hormuz; by mid‑April it had risen to $101 a barrel. The article notes that oil is a fundamental input for transportation, plastics, fertilizers and countless supply chains, so any disruption reverberates globally and raises costs for manufacturers and consumers alike.
The primary source explains that, ultimately, the bulk of the additional money heads toward the source of the oil itself—the oil companies. What happens next depends on where those companies operate and who owns them. In the Permian Basin of West Texas, the largest U.S. oil field, price increases outpace short‑term cost rises, creating a windfall that largely goes to company owners—shareholders—through dividends, debt reduction, share buybacks and reinvestment in drilling and pipelines.
In contrast, Saudi Arabia’s government controls nearly all domestic oil production, so higher prices boost state finances and fund public spending. Norway directs its oil revenues into the Government Pension Fund Global, a sovereign wealth fund worth over $2 trillion that saves wealth for future generations while supporting current public budgets. The United Kingdom splits the benefits: private shareholders receive the bulk of increased profits, but an extra tax on oil and gas companies’ earnings sends a significant share to the government to help cover public expenses. Finally, Russian oil remains subject to Western sanctions that allow shipping, insurance and financing only if the price stays below $60 a barrel; consequently, the main beneficiaries of high prices are the government‑linked entities tied to Putin’s military‑industrial complex rather than the Russian populace.