BP profits more than double to $3.2bn as war in Iran fuels oil trading windfall

Key facts

• BP reported underlying replacement cost profit of $3.2bn for Q1 2026, up from $1.38bn a year earlier.
• The profit surge was driven by 'exceptional oil trading' amid the US-Iran conflict and closure of the Strait of Hormuz.
• Meg O’Neill presented her first quarterly results as BP CEO; Carol Howle became deputy CEO.
• BP’s Rumaila oilfield in Iraq was damaged by drone attacks; repair costs are expected to weigh on future profits.
• International oil benchmark Brent crude hit $119.50 a barrel in March before emergency stockpile releases cooled prices.
• Campaign groups including Greenpeace UK and Global Witness condemned the profits and called for tougher windfall taxes.
• BP plans to reorganize into defined upstream and downstream businesses and exit about 10% of its company-owned retail sites.

War-fueled trading bonanza lifts BP earnings

BP’s first-quarter profits more than doubled to $3.2bn, the highest quarterly figure since 2023, as the energy giant capitalised on the surge in global oil prices triggered by the US-Iran war and the effective closure of the Strait of Hormuz. The underlying replacement cost profit compared with $1.38bn in the same period last year and $1.5bn in the fourth quarter of 2025, the company reported Tuesday. Meg O’Neill, in her first earnings release since taking over as chief executive, credited “exceptional oil trading” for the windfall. She acknowledged the company was operating in “an environment of significant complexity” marked by geopolitical tension, supply disruption and rapid technological change.

New leadership reshapes strategy amid crisis

Tuesday’s results marked the first quarterly report under O’Neill, who succeeded interim CEO Carol Howle. Howle now serves as deputy CEO. O’Neill announced a reorganisation that will split BP into defined upstream and downstream businesses, though she offered few details on the operational implications. “This change will enable us to reset ways of working and ensure that accountability sits in the right place and simplifies decision-making, empowering the bp team,” she said in a video presentation. Her immediate priorities include safety, operational performance and capital discipline.

Campaigners decry 'horrifying' profits as household bills soar

The profit announcement drew immediate condemnation from environmental and consumer groups. Maja Darlington, a climate campaigner for Greenpeace UK, said the war had been “an entirely predictable disaster for everyone except the oil industry. BP’s profits are booming, with Trump’s bombs bringing billions for them and bigger bills for us.” Patrick Galey, head of investigations at Global Witness, said: “It is horrifying to see BP’s profits grow as millions suffer the fallout from the US-Israel war on Iran. Unfortunately, we’ve been here before – when Russia invaded Ukraine four years ago we saw big oil firms make bumper profits from spiralling fuel costs.” The war is forecast to push average household energy bills to nearly £2,000 a year from July, when the government’s next quarterly price cap takes effect.

Oil market turmoil and BP’s relative insulation

The International Energy Agency described the global energy market as facing the greatest supply crisis in history after Iran effectively shut the Strait of Hormuz, through which about 20% of global oil and product flows transit. The international benchmark Brent crude reached $119.50 a barrel in March before a record release of emergency stockpiles helped cool prices. On Tuesday, Brent stood at about $111 a barrel, up 3%. BP has less exposure to the Hormuz blockage than most Western peers, because its joint ventures in Iraq represent only 4% of its total oil and gas production. Still, the company’s Rumaila oilfield in southern Iraq was hit by drone attacks, and the multibillion-dollar repair bills are expected to constrain future profits across the industry.

Retail and convenience segment shows mixed results

BP’s customers and products segment, which includes its retail fuel and convenience store operations, posted a replacement cost profit before interest and tax of $2.5bn for the first quarter, up from $1.4bn in the previous quarter. However, the underlying result for the customers segment was only $0.1bn higher, reflecting seasonally lower volumes and reduced retail fuel margins. BP is reshaping its retail network and plans to exit about 10% of its company-owned sites, former CEO Murray Auchincloss said in November. The company operates 1,708 convenience stores in the US under the brands ampm, Thorntons and TravelCenters of America, ranking fifth in CSP’s 2026 Top 40 update.

Outlook: windfall tax calls and production challenges

The bumper profits have reignited calls for higher windfall taxes on oil companies to fund assistance for struggling households. Campaigners argue that the war in Iran, which began in late February, has created an “entirely predictable” crisis that oil companies are exploiting. O’Neill said BP was working with the Iraqi government to restart production at Rumaila “as soon as possible” once shipping restrictions through the Strait of Hormuz are lifted. She added that BP employees were working “relentlessly to keep our assets producing safely, reliably and efficiently” and helping governments minimise disruption. The company’s ability to sustain its profit trajectory will depend on the duration of the conflict, the pace of repair work, and the political response to rising energy costs.

The bottom line

• BP’s Q1 2026 profit of $3.2bn more than doubled year-on-year, driven by exceptional oil trading amid the US-Iran war.
• New CEO Meg O’Neill announced a reorganisation into upstream and downstream businesses but gave few details.
• Campaign groups condemned the profits as profiteering from war and called for higher windfall taxes.
• The Strait of Hormuz closure has caused the greatest supply crisis in history, per the IEA, but BP’s exposure is limited.
• Damage to BP’s Rumaila oilfield and broader industry repair costs are expected to cap future profits.
• Household energy bills in the UK are forecast to reach nearly £2,000 a year from July, intensifying political pressure.