Shell posts $6.92bn quarterly profit as Iran conflict drives oil surge

Oil major Shell reported a sharp rise in first-quarter profits on Thursday, as the escalating conflict between the US-Israel alliance and Iran sent global crude prices climbing. The company posted earnings of $6.92 billion (£5.1 billion) for the three months ending March, up from $5.58 billion in the same period last year.

The surge comes as the key Strait of Hormuz—a chokepoint that normally handles roughly 20% of the world’s oil and liquefied natural gas supplies—has been effectively shut down since hostilities erupted. The disruption has tightened global supply and pushed benchmark crude prices to multi-year highs, benefiting major producers.

Shell’s results follow a similar trend at rival BP, which last week reported that its first-quarter profit had more than doubled. The earnings windfall has reignited debate over windfall taxes and the industry’s role in profiting from geopolitical turmoil.

“It’s no surprise Shell is cashing in while families struggle with higher fuel bills,” said Maria Gonzalez, a London-based energy analyst. “But the real story is how long this crisis lasts—if Hormuz stays closed, we could see $120 oil by summer.”

Tom Fletcher, a retired oil trader in Aberdeen, was more blunt: “They’re making a killing off bloodshed. It’s disgusting, but that’s how the game works. Meanwhile, the rest of us are paying through the nose at the pump.”

Industry observers note that while the war has boosted short-term profits, it also poses long-term risks. “Shell and others face mounting pressure from investors and governments to accelerate the energy transition,” said Dr. Priya Sharma, an energy policy researcher at the University of Oxford. “These windfall profits might buy them time, but they won’t shield them from the inevitable shift to renewables.”