BP has reported a dramatic surge in first-quarter profits, more than doubling to US$3.2 billion (£2.4 billion), as the escalating Iran war drove crude prices higher and boosted its oil trading operations.
Profit figures exceed expectations
The FTSE 100 energy giant announced that its underlying replacement cost profit—its preferred measure—rose by over 130% compared to the same period last year. This figure significantly surpassed analyst forecasts, which had predicted profits of around US$2.67 billion (£1.97 billion).
In the first quarter of 2025, BP posted a profit of US$1.38 billion (£1.02 billion), while the previous quarter (Q4 2025) saw profits of US$1.54 billion (£1.13 billion). The latest result marks a substantial acceleration in earnings.
Oil trading division drives growth
The group's customers and products division, which encompasses its oil trading unit, was the primary driver of the profit surge. This segment reported profits of US$2.5 billion (£1.84 billion), a sharp increase from US$1.4 billion (£1.03 billion) in the previous quarter and a mere US$103 million (£76.2 million) a year ago.
The boom in oil trading profits reflects the volatility and high prices in global crude markets, which have been exacerbated by the ongoing conflict in Iran. BP has capitalised on these conditions to generate exceptional returns from its trading activities.
Context and outlook
The strong performance comes amid broader economic uncertainty linked to the Iran war, which has disrupted supply chains and pushed energy prices higher. Prime Minister Keir Starmer recently urged Britons not to panic over the conflict's impact on the economy, but the soaring cost of crude continues to affect households and businesses.
BP's results underscore the significant financial gains for oil majors during periods of geopolitical instability. The company is expected to provide further details on its outlook and capital allocation plans in the coming weeks.
