Eni reports fivefold profit surge as oil prices rise on Middle East conflict

Italy's state-linked energy company Eni has reported a fivefold increase in second-quarter profits, according to a report in The Local Italy, making it the latest European oil major to post windfall gains from the surge in crude prices linked to the conflict in the Middle East.

The profit jump, which the foreign outlet described as a five-fold rise from the same period a year earlier, places Eni alongside other European energy firms such as Shell and TotalEnergies that have also reported strong earnings as oil prices hover near multi-year highs. The benchmark Brent crude has risen sharply since the escalation of hostilities in the region, which disrupted shipping routes and raised fears of supply constraints.

For Italy, the revenue boost at a company in which the state holds a roughly 30 percent stake through the Ministry of Economy and Finance carries implications for public finances and energy policy. Eni is a major contributor to Italy's tax base and dividend income, and its earnings help offset some of the pressure on the government's budget from higher energy prices borne by consumers and businesses.