Business

Shell profits double as oil prices rise due to Iran war

BBC Business · 2026-07-30

AI SUMMARY

• What happened: Shell reported a profit of $9.84 billion for the second quarter of 2026, more than doubling its earnings from the same period last year, due to rising oil prices linked to the Iran conflict. • Why it matters: The surge in profits highlights the impact of geopolitical tensions on global oil prices and supply chains, particularly through critical routes like the Strait of Hormuz, affecting the broader energy market. • What to watch next: Investors will be monitoring Shell and other energy firms for their responses to ongoing geopolitical developments and potential further fluctuations in oil prices in the coming months.

**Shell Profits Surge Amid Rising Oil Prices Due to Iran Conflict**

**Published: 30 July 2026**

Shell, the multinational oil and gas company, has reported a remarkable increase in profits for the second quarter of 2026, more than doubling its earnings compared to the same period last year. The company announced profits of $9.84 billion (£7.37 billion) for the April to June timeframe, a significant rise from $4.26 billion during the same quarter in 2025.

The surge in Shell's profits is attributed to the escalating oil prices following the outbreak of the US-Israel conflict with Iran. This situation has led to considerable disruptions in global oil and liquid natural gas (LNG) supplies, particularly through the critical shipping route of the Strait of Hormuz, a vital passage for a significant portion of the world's oil trade.

Wael Sawan, Shell's Chief Executive Officer, highlighted the company's strong operational performance as a key factor contributing to these impressive results. He noted that Shell has managed to navigate the challenges posed by severe disruptions in global energy markets effectively.

In addition to the second-quarter profits, Shell's earnings for the first quarter of 2026 were reported at $6.92 billion. This brings the total profits for the first half of the year to approximately $16.76 billion, marking a 70% increase compared to the same period in 2025. The company's performance mirrors that of other major energy firms, including BP and Norway's Equinor, which have also reported substantial profits this year, largely due to the volatility in oil prices.

Before the onset of the conflict, Brent crude oil, the global benchmark, was priced around $73 per barrel. However, prices have fluctuated significantly since the outbreak of hostilities, peaking above $120 per barrel before retreating below the $100 mark. Such volatility has created opportunities for traders, as the widening gap between buying and selling prices can lead to increased profit margins.

As the situation in the Middle East continues to evolve, the oil market remains sensitive to developments regarding the Strait of Hormuz and the broader geopolitical landscape. The ongoing conflict has underscored the vulnerability of energy supplies and the potential for further price fluctuations in the coming months.

Shell's robust financial performance amidst these challenges reflects the company's strategic positioning and ability to capitalize on market dynamics, even in times of uncertainty. As the energy sector braces for continued volatility, Shell and its competitors are likely to remain in the spotlight, with investors keenly watching how they navigate the complexities of the global oil market.

Source: BBC Business
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