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Shell profits rise as Iran war pushes oil prices higher
Shell reported Q1 2026 profits of $6.92bn, higher than expected and up from the same period a year earlier, aided by stronger oil trading and refining margins. The sector overall posted bumper results, with BP and Equinor also reporting gains, while oil prices fluctuated amid the conflict affecting the Strait of Hormuz. Shell also announced the acquisition of ARC Resources for $16.4bn; broader policy context includes the UK's windfall tax extension and a potential rise in the energy price cap.
Why It Matters
The profits show how energy companies benefit from geopolitical disruption, while policy measures shift the tax and consumer energy-cost landscape in response to higher prices.
Timeline
7 Events
Brent crude price context
May 7, 2026
Brent crude, the global price benchmark, was around $101 per barrel as of May 7. The article notes it had previously hovered around $73 before the conflict and swung above $120 at one point and below $100 at other times as the Hormuz disruption persisted.
Energy price cap expected to rise in July revision
May 7, 2026
The energy price cap is expected to rise by about £200 when revised in July 2026 due to a jump in wholesale oil and gas prices since the start of the Iran conflict.
UK windfall tax extended to March 2030
May 7, 2026
The Energy Profits Levy windfall tax for UK oil and gas profits was extended to March 2030.
Shell Q1 2026 profits rise to $6.92bn
May 7, 2026
Shell reported first-quarter 2026 profits of $6.92bn, up from $5.58bn a year earlier, helped by stronger oil trading and higher refining margins. Shell noted lower oil and gas output (down 4% vs. the previous quarter), LNG production in Qatar has been shut since early March due to the conflict, and its Pearl GTL site in Qatar has been damaged by attacks.
Equinor reports Q1 profits of $9.77bn
May 6, 2026
Equinor said profits in the first three months of the year had hit $9.77bn, its highest quarterly profit for three years.
BP profits rise: first-quarter earnings up more than double
May 3, 2026
BP said its profits for the first three months of the year had more than doubled compared with the same period a year earlier.
Shell to buy ARC Resources for $16.4bn
May 1, 2026
Shell announced it would acquire Canadian shale producer ARC Resources for $16.4bn, a deal described by CEO Wael Sawan as delivering value for decades to come.