Headline: Shell Profits Rise Sharply as Iran Conflict Drives Oil Price
- May 7
- 1 min read
Why this matters:Rising energy company profits highlight the global economic impact of Middle East instability and higher oil prices. Increased wholesale costs may also lead to higher household energy bills and inflation.
Date: 7 May 2026
Tags: Business, Energy, World, Economy
Summary:
Shell reported first-quarter profits of $6.92bn, exceeding analyst expectations and rising from $5.58bn last year.
Oil prices surged following the US-Israel conflict with Iran and disruption in the Strait of Hormuz.
The Strait of Hormuz usually carries about 20% of global oil and LNG supplies.
Rival energy firms including BP and Equinor also reported significantly higher profits.
Shell said strong trading performance contributed to increased earnings during volatile energy markets.
Brent crude prices rose sharply, at one stage exceeding $120 per barrel during the conflict.
Shell’s refining business also benefited from higher margins on fuel and jet fuel production.
The company reported a 4% decline in oil and gas output compared with late 2025.
Shell’s LNG production in Qatar has been disrupted and infrastructure damaged during the conflict.
Environmental groups called for stronger windfall taxes on energy companies’ increased profits.
What’s next:UK energy price cap estimates suggest household bills could rise by around £200 from July. Markets remain focused on whether the Strait of Hormuz fully reopens and oil prices stabilise.
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