BP has reported first-quarter profits of $3.2bn (£2.4bn), more than double the $1.38bn recorded in the same period last year, as the company benefited from soaring oil prices linked to the war in Iran. The energy giant credited 'exceptional oil trading' for its highest quarterly profit since 2023, prompting outrage from campaign groups and renewed calls for tougher windfall taxes on fossil fuel companies.
The global energy market has faced its greatest supply crisis in history, according to the International Energy Agency, after Iran throttled exports from the Gulf by seizing control of the Strait of Hormuz. International oil prices reached highs of $119.50 a barrel in March before a record release of emergency stockpiles helped cool the market. Brent crude was trading at about $111 a barrel on Tuesday, its highest level since the US-Iran ceasefire was agreed on 7 April.
Meg O’Neill, BP’s new chief executive, said the company was playing its part to 'keep oil, gas and refined products flowing' despite facing 'an environment of conflict and complexity'. She added that BP was working with the Iraqi government to restore production at its Rumaila oilfield in southern Iraq, which was damaged by drone attacks. The multibillion-dollar repair bills are expected to constrain future profits for big oil companies.
Campaigners condemned the profits as 'horrifying', arguing they came at the expense of consumers facing soaring energy bills. Maja Darlington of Greenpeace UK said: 'The war has 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 of Global Witness added: 'It is horrifying to see BP’s profits grow as millions suffer the fallout from the US-Israel war on Iran.'
The profits have reignited calls for higher windfall taxes on oil companies to fund assistance for struggling households. The war in Iran is forecast to push household energy bills to nearly £2,000 a year from July. Chancellor Rachel Reeves has ruled out universal support but said the government would 'capture the profits made in the UK through the windfall tax', which is set at 38% on upstream oil and gas activities, bringing the headline rate to 78%. However, the tax only applies to UK-generated earnings.
