BP profit more than doubles as gasoline prices surge again in the US

BP Profits Surge as Iran War Drives Energy Prices Higher

BP reported a dramatic profit surge in the first quarter as the ongoing war in Iran pushed global energy prices to multiyear highs. The British energy giant saw profits more than double compared to the same period last year, exceeding analysts’ already heightened expectations.

The company earned $3.84 billion, or $1.47 per share, for the first three months of the year—far outpacing last year’s $687 million, or 26 cents per share. BP’s underlying replacement cost profit, a metric that more closely resembles net income reported by U.S. companies, reached $3.2 billion.

This marked BP’s first earnings report since the conflict began in late February and offered a preview of what investors might expect when other major oil companies like Exxon Mobil, Chevron, and ConocoPhillips release their results later this week.

Market analysts attribute BP’s exceptional performance partly to its substantial oil trading operations, which benefited from the current volatility in energy markets. James West, managing director and head of Energy and Power Research at Melius, noted: “The Middle East conflict created significant crude and refined products dislocations that BP’s integrated supply chain was positioned to monetize.”

At the heart of the energy price surge is the near closure of the Strait of Hormuz, a critical maritime passage off Iran’s coast through which approximately 20% of the world’s oil typically flows. Since the outbreak of hostilities when the U.S. and Israel launched strikes on Iran in late February, the strait has been severely restricted.

The impact on global oil prices has been dramatic. Brent crude, which traded at about $73 per barrel the day before the conflict began, has skyrocketed to more than $104 per barrel. This steep increase has rippled through global markets and directly impacted consumers.

In the United States, gasoline prices hit $4.18 per gallon on Tuesday, according to AAA—the highest level since 2022 following Russia’s invasion of Ukraine. This represents an increase of well over a dollar per gallon compared to just one month ago.

The U.S. Department of Labor reported that these surging fuel costs contributed significantly to the largest monthly jump in gas prices in six decades, exacerbating inflation concerns. The impact is being felt most acutely by lower- and middle-income households struggling to cover basic expenses.

Beyond individual consumers, businesses particularly sensitive to fuel costs are also suffering. Airlines worldwide have begun canceling flights as jet fuel supplies tighten and costs increase, leading to higher ticket prices and reduced service.

Despite diplomatic efforts, a resolution appears distant. The Trump administration seems unlikely to accept Iran’s offer to end the war and reopen the strait in exchange for lifting the U.S. blockade on the country.

BP’s windfall profits have sparked immediate backlash on social media and from advocacy organizations. Clémence Dubois, global campaigns director at climate action group 350.org, criticized the situation, saying: “Families are being pushed to the brink by spiraling energy bills, while fossil fuel companies turn a war into a windfall. This is not just unjust, it’s unacceptable.”

Similarly, Simon Francis from the End Fuel Poverty Coalition remarked: “These astronomical profits are a startling reminder that when conflict drives up the price of oil and gas, energy companies profit and households pay.”

Despite the controversy, BP shares rose more than 1% following the earnings announcement, approaching a 52-week high. Other major oil producers saw similar stock performance gains as investors responded to the industry’s improved financial outlook amid ongoing global energy market disruptions.

As the conflict continues with no immediate resolution in sight, energy markets remain volatile, with consumers and businesses bracing for continued price pressures while oil companies reap the financial benefits of the geopolitical turmoil.