BP profits more than double as oil giant cashes in on soaring prices amid Iran war
BP has reported its profits more than doubled in the first quarter, as traders cashed in on soaring oil prices triggered by the Iran war.
The energy giant said profits reached $3.2billion between January and March after an ‘exceptional’ performance in its trading division.
It is much higher than the $2.7billion City analysts had predicted and more than double the $1.8billion it reported in the same period last year.
BP said the performance of its oil trading division had been ‘exceptional,’ as it benefited from volatile oil prices due to the closure of the Strait of Hormuz.
Brent crude averaged $81.13 a barrel in the first quarter, compared to $63.73 in the fourth quarter of 2025, due to price lags. Oil prices have continued to rise and brent crude is now up to $110 a barrel as of this morning.
However, the FTSE-100 firm warned that fuel margins are expected to ‘remain sensitive’ and underlying oil and gas production will be flat this year because of the ongoing disruption in the Middle East.
Iran windfall: BP has reported ‘exceptional’ results in the first quarter as oil prices soared
Net debt rose to $25.3 billion from just over $22 billion in the previous quarter, pushed up by lower operating cash flow, which came to $2.9 billion.
Oil and gas production was broadly flat, while results in its gas trading division had been average due to price lags.
It is BP’s first set of results under new chief executive Meg O’Neill, who took over at the beginning of the month.
She said she had joined ‘at a time when our industry is operating in an environment of conflict and complexity, playing a vital role in keeping energy flowing.’
She added: ‘Overall, our business continues to run well. This was another quarter of strong operational and financial delivery, and we made further progress towards our 2027 targets.’
The American is expected to pivot BP back to focusing firmly on oil and gas, after a disastrous foray into renewables.
BP has come under pressure from shareholders, including activist investor Elliott, to pay down its debt and streamline operations.
Duncan Ferris, Investment Writer at Freetrade, said: ‘The firm has been among the best-performing supermajors since the escalation of conflict in Iran. Higher oil prices, and the opportunities they offer to the company’s traders, have breathed life into a stock battered by faltering low-carbon projects and investor unrest.
‘A blockbuster quarter buys the company time, but is it an aberration? Or does this strong showing herald the start of a new era of the kind of sustainable cash generation and balance sheet repair shareholders have been calling for?’
Shares in BP opened 2.46 per cent higher at 586p.
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