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350.org
$1.1 Trillion Big Oil Subsidies Spark Fresh Calls for Windfall Tax on Profits From Trump's Iran War
"The $1.1 trillion that governments are pouring into fossil fuel subsidies this year is not a safety net, it is a ransom payment."
Jul 01, 2026
With the US and Iranian governments engaged in 60 days of peace talks, the United Nations' latest projections about the illegal war's impact on fossil fuel subsidies this week triggered new demands for taxing the windfall profits of climate-wrecking Big Oil.
The United Nations Development Program (UNDP) on Monday released "Military Escalation in the Middle East: Cushioning the Global Shock," a report detailing how governments have navigated the "most severe oil supply shock in history," caused by Iran limiting traffic through the Strait of Hormuz in response to the Trump administration and Israel's unlawful assault.
As fossil fuel prices have soared worldwide, the report states, "governments have moved quickly to cushion households and firms from higher energy prices through fuel subsidies, tax cuts, price caps, strategic stock releases, emergency procurement, export restrictions, demand-management measures, and fuel switching."
"While energy subsidies had fallen by roughly half in 2024 as energy markets stabilized, the downward trajectory has sharply reversed," the document notes. "We estimate that global fossil fuel subsidies are currently on track to reach $1.1 trillion in 2026 and could reach as high as $1.43 trillion in a severe scenario where the average oil price reaches $110/barrel... This represents an estimated $410-$740 billion increase from 2025."
UNDP Administrator Alexander De Croo said in a statement that "the global spillover of the Middle East conflict is profound and potentially long-lasting. Developing countries, many already struggling with debt, have temporarily managed to protect people from the worst of the energy shock."
"These countries are doing everything they can, but there is a hidden cost," he stressed. "To deal with today's crisis, governments are postponing tomorrow's investments. Money that should be building schools, hospitals, and clean energy systems is being used simply to keep economies afloat. Without international support, these countries won’t escape the shock. They are absorbing it at the expense of future growth."
"No country should have to sacrifice its future development to manage a crisis it did not create," De Croo argued. "First, we must unlock multilateral liquidity in ways that are easy to access for low- and middle-income countries. Second, we must accelerate investment in renewable energy. Every clean energy investment reduces exposure to future shocks. The crisis has made one thing clear: Energy security and the energy transition are no longer separate agendas. They are one and the same."
In addition to reiterating calls for a just transition to clean energy, the advocacy group 350.org has repeatedly advocated for a windfall profits tax targeting oil and gas giants cashing in on the conflict in the Middle East. Executive director Anne Jellema pushed for such policies again on Wednesday, noting the new UNDP numbers.
"The $1.1 trillion that governments are pouring into fossil fuel subsidies this year is not a safety net, it is a ransom payment," Jellema declared. "Every dollar spent shielding the fossil fuel industry from the consequences of its own price volatility is a dollar not spent on the clean energy systems that can bring costs down for good."
"We need a phaseout to end public subsidies for fossil fuel companies, and a permanent windfall tax on fossil fuel profits," she continued. "Not a one-off levy, but a permanent, legislated mechanism that redirects the extraordinary profits of an industry driving this crisis into the just transition every country needs. That means affordable clean energy, retrofitted homes, and funding to protect people from the extreme weather unleashed by fossil pollution."
In the United States, where President Donald Trump's war has cost Americans tens of billions of dollars at the pump, Sen. Sheldon Whitehouse (D-RI) and Rep. Ro Khanna (D-Calif.) reintroduced the Big Oil Windfall Profits Tax Act in March, just weeks into the war.
Backing the bill, Food & Water Watch managing director of policy and litigation Mitch Jones said at the time that "historical evidence could not be any clearer: Big Oil will undoubtedly leverage the current crisis in the Middle East to maximize profit margins, pinching American families and enriching their executives and Wall Street speculators."
"This demands a policy response—namely, a windfall profits tax... which would recover much of these egregious, opportunistic gains and return them to everyday Americans," Jones added. "Fossil fuel companies must be held accountable for the profiteering they are orchestrating as we speak."
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Big Oil Caused the Climate Crisis. Now They Want To Get Out of Paying for It.
Why should we keep footing the bill for a crisis caused by greedy billionaire oil corporations?
May 09, 2026
For decades, major fossil fuel companies have exploited both people and the planet for their own corporate greed, fueling the climate crisis while communities are left to absorb the costs. When floods, wildfires, and heatwaves strike, it is states, local governments, and taxpayers—not corporate polluters—are stuck with the bill.
Communities have had enough of cleaning up Big Oil’s mess, and momentum is growing nationwide to recover the mounting costs of climate change from the companies most responsible for the crisis. States, municipalities, and tribes across the country are taking Big Oil to court for knowingly fueling climate change, and orchestrating a Big Tobacco-style campaign of deception to mislead the public. Washington is home to four climate accountability cases, including the first-ever climate-related wrongful death case, two tribal climate deception cases, and a first-of-its-kind class action suit naming Big Oil’s role in fueling the escalating insurance crisis.
Terrified of facing accountability, the fossil fuel industry is seeking total legal immunity from the legal and legislative efforts communities across the country are pursuing to make polluters pay for the climate costs they’ve enabled for decades. For the past year, Big Oil has been lobbying Congress and the Trump administration for a liability shield that would effectively put the industry above the law, much like the 2005 law protecting gun manufacturers from lawsuits. And they are starting to get their wish.
Climate accountability is our democratic right, and Big Oil’s push for immunity is a power grab to shut us out.
The threat is real. On April 17th, Republican lawmakers in Congress introduced the “Climate Shakedowns Act”, a bill that would shelter the fossil fuel industry from facing accountability, and immunity bills protecting Big Oil have already started to be introduced and passed in Utah, Tennessee, and other states.
If Big Oil receives this ‘get-out-of-jail-free card,’ it would take away our right to hold this harmful industry accountable. Blocking these efforts is dangerous overreach and would set a harmful precedent that protects corporations at the expense of our communities. No corporation should be above the law.
That’s why 32 organizations in Washington state submitted a letter to Sens. Maria Cantwell and Patty Murray, along with the rest of our congressional delegation, urging them to reject any attempts to give Big Oil immunity.
When catastrophic flooding hits our homes, we’re the ones responsible for paying for repairs and rebuilding, while the recovery costs further strain already overburdened state and local budgets. The climate crisis is deeply interwoven with, and significantly exacerbates, the affordability crisis. Extreme weather events like droughts, floods, wildfires, and heat waves are all becoming a much more common occurrence in Washington. And most often it is hitting low-income and communities of color who are hit the hardest and the least able to recover.
Meanwhile, the major oil and gas companies most responsible for the damages are raking in $3 billion dollars in profits each day. Why should we keep footing the bill for a crisis caused by greedy billionaire oil corporations?
By seeking immunity, these companies are working to silence our efforts to hold them accountable, deny communities their day in court, and override state climate laws. Climate accountability is our democratic right, and Big Oil’s push for immunity is a power grab to shut us out. Washington's lawsuits against Big Oil are grounded in justice and accountability. We must keep fighting for a future where communities are protected, democracy is respected, and corporations are held accountable when they cause harm.
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Oil Giants' Profits Soar as Trump's Iran War Estimated to Deliver $1 Trillion Hit to World Economy
"Gas prices have jumped to the highest level in four years," said Rep. Ted Lieu. "What are Trump and Republicans focused on? Spending $400 million dollars of taxpayers' money for a White House ballroom."
Apr 28, 2026
A fossil fuel industry watchdog is estimating that US President Donald Trump's illegal war with Iran could deliver a $1 trillion hit to the global economy—while oil and gas giants reap the benefits.
According to a Tuesday report in The Guardian, climate advocacy group 350.org is estimating that the Iran war will impose between $600 billion and over $1 trillion in additional costs to households, businesses, and governments, depending on how long the Strait of Hormuz remains closed.
The Guardian noted that even this eye-popping economic cost "is likely to be an underestimate because it does not include the substantial knock-on effects of inflation, particularly higher fertilizer and food costs, lower economic activity, and rising employment."
350.org's analysis came on the same day that US gas prices rose to their highest level since Trump launched the Iran war in late February.
As reported by The New York Times, the average price for a gallon of gas jumped by 1.6% to $4.18 on Tuesday, the highest price for a gallon of gas since April 2022, shortly after Russia disrupted global energy markets with its invasion of Ukraine.
While consumers are paying more at the pump, fossil fuel companies are raking in massive profits. British oil giant BP on Tuesday posted a profit of $3 billion for the first quarter of 2026, which exceeded Wall Street analysts' expectations and was more than double the profit it reported in the first quarter of 2025.
Clémence Dubois, global campaigns director at 350.org, said that BP's blowout earnings report showed how Big Oil's business model depends on the suffering of working people.
"Families are being pushed to the brink by spiraling energy bills, while fossil fuel companies turn a war into a windfall," said Dubois. "This is not just unjust, it’s unacceptable. Fossil fuels companies don’t just heat the planet, they fuel and thrive on geopolitical tension, insecurity, and human suffering. The solutions exist, what’s missing is the political will to stop polluters [from writing] the rules."
In a Tuesday social media post, Sen. Elizabeth Warren (D-Mass.) more succinctly echoed Dubois' message.
"It's day 59 of Trump's war with Iran," she wrote. "Gas prices are 40% higher since the war began."
Rep. Sylvia Garcia (D-Texas) similarly pinned the blame on Trump for high gas prices, and took at shot at her Republican colleagues who have spent the last two days lobbying to build the president's proposed $400 million luxury ballroom with public funds.
"Gas is $4.18 and rising because of Trump’s war with Iran," Garcia wrote. "Republicans are ripping away healthcare and pushing millions off SNAP. And their priority? $400 million in taxpayer money for Trump’s ballroom. They don’t give a damn about helping working people."
Rep. Tim Lieu (D-Calif.) expressed a similar sentiment.
"Gas prices have jumped to the highest level in four years," he wrote. "What are Trump and Republicans focused on? Spending $400 million dollars of taxpayers' money for a White House ballroom that most Americans will never be able to access, and building a giant arch in DC for Trump."
Dylan Williams, vice president for government affairs at the Center for International Policy, marveled at the political tone deafness of Republicans pushing to fund Trump's ballroom amid a cost-of-living crisis.
"Republicans seem to be betting that Americans will stop worrying about the Iran war and high gas prices," he wrote, "when they hear the good news that they’ll also be paying for Trump’s ballroom."
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