Family Offices Capitalize on Rising Oil Prices Amid Iran Conflict

The ongoing conflict in Iran has significantly impacted global oil prices, which have surged above $94 a barrel, marking an increase of approximately 30% since the conflict began in late February 2026. This rise in prices has created lucrative investment opportunities, particularly for family offices—investment firms representing ultra-wealthy families—that have strategically positioned themselves in the oil market.

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In recent years, many private equity funds and institutional investors have retreated from the oil and gas sector, largely due to pressure from environmentally conscious stakeholders advocating for sustainable investments. However, family offices have emerged as key players in this space, filling the gap left by these traditional investors. According to a September survey by Citi Private Bank, over half of family office respondents indicated a likelihood of making sustainable investments in the next five years, yet they remain unbound by the same environmental, social, and governance (ESG) mandates that constrain private equity firms.

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Keith Behrens, head of energy and clean energy investment banking at Stephens, noted, "Family offices are contrarian players. A lot of investors left the sector for non-fundamental reasons, like endowment funds, who had students protesting." This exodus of capital has allowed family offices to capitalize on favorable investment conditions, as they can invest in oil with reasonable cash flow multiples.

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Family offices possess a distinct advantage over private equity firms due to their longer investment horizons. Jeff Peterson of Gillon Capital emphasized this point, stating, "We back teams who are looking to build businesses over the long term, because that's where we really differentiate ourselves." This long-term perspective enables family offices to navigate fluctuations in oil prices and downturns in deal-making more effectively than funds that operate within a limited time frame.

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Despite the financial gains, the involvement of family offices in the oil sector has drawn criticism from environmental advocates who argue that continued investment in fossil fuels undermines global sustainability efforts. The tension between profit motives and environmental responsibility remains a contentious issue, particularly as the world grapples with climate change.

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Investment experts have acknowledged the dual nature of family offices' strategies. While they are seen as opportunistic in capitalizing on current market conditions, there is also recognition of their potential to contribute to long-term energy solutions. The conversation around sustainable investments continues to evolve, with family offices navigating these complex dynamics.

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As the conflict in Iran persists and oil prices remain volatile, family offices are likely to continue exploring opportunities in the energy sector. Their unique position may influence future investment trends, particularly as the dialogue around sustainability and fossil fuel investments intensifies.

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• “Family offices are contrarian players. A lot of investors left the sector for non-fundamental reasons, like endowment funds, who had students protesting,” — Keith Behrens, Head of Energy and Clean Energy Investment Banking, Stephens

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• “We back teams who are looking to build businesses over the long term, because that's where we really differentiate ourselves.” — Jeff Peterson, Gillon Capital

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