Oil giants have been accused of making more than £26 billion in "war profits" globally in the first three months of this year, with campaigners stepping up criticism after Shell posted bumper results on the back of the Middle East conflict. Analysis by the End Fuel Poverty Coalition suggests energy firms generated £3 billion in UK profits since January, a significant portion following a surge in oil prices after the start of the Iran war in late February. This equates to around £102 for every UK household.
Shell and BP Post Soaring Profits
Shell reported profits of nearly £5.1 billion for the first quarter of 2026, more than double the £2.4 billion it made in the final three months of 2025 and up from £4.1 billion a year earlier. The firm benefited from a surge in wholesale oil and gas prices, as well as its refineries arm, which saw profits jump to around £1.5 billion. BP also faced backlash after its quarterly profits more than doubled to £2.4 billion, far exceeding expectations.
Impact on UK Households
Simon Francis, from the End Fuel Poverty Coalition, said: "Around a quarter of every energy bill is taken in profit by a range of firms involved in the industry, and that figure could well grow thanks to the war profits still being generated. Not only do these firms profit off the back of a war which has killed thousands of civilians, but the profits are also built on the backs of financial suffering in UK households. It can’t be right that while the public see their energy bills increase, energy firms make billions and employ rafts of accountants to maximise their profits and lobbyists to campaign against the windfall tax."
The clearest sign of the economic fallout for many UK households has been the price of petrol and diesel. The RAC said petrol now averages 157.56p a litre nationally, the highest since April 20 and up from 132.83p before the Iran war started. Diesel has jumped from 142.38p to 188.07p a litre. RAC head of policy Simon Williams warned: "The outlook for the first couple of weeks of May is ominous. Wholesale petrol and diesel prices jumped by around 5p a litre last week, and are now at their highest since the war began. If oil prices remain at elevated levels, future price rises at forecourts is all but inevitable."
Energy Price Cap Set to Rise
Industry experts Cornwall Insight have forecast that regulator Ofgem’s energy price cap will rise by an average £201 a year from the start of July. Meanwhile, a new poll from Survation found that 74% of the public felt it was morally wrong for oil and gas companies to profit from the energy crisis caused by the Iran war.
Jan Shortt, general secretary of the National Pensioners Convention, said: "It is an appalling situation when energy companies profit from a humanitarian crisis and the public pay the price of ever increasing household bills. It is time for a real and urgent push to engage with renewable energy and sustainable energy rather than fossil fuels. The billions going into the coffers of energy companies like Shell and BP should be used to offset the increase in household energy bills so that hot food and heating homes when necessary doesn’t mean going into debt."
Industry Response
Shell defended its profits, noting that one reason for the surge was seasonal factors, as the end of the year tends to be quieter, and the previous quarter was depressed by significant deferred tax payments. The company highlighted its dividends, with around £7 billion paid in 2025, about 9% of the total declared by FTSE 100 companies, and noted that around 20% of its shareholders are UK based.
Brent crude oil, jet fuel and gas prices have all surged after production was hit by attacks in the region, and the Strait of Hormuz shipping corridor remains heavily disrupted. The price of crude reached $126 a barrel last week, the highest level in four years, before falling back amid hopes of a peace deal, but still remains close to $100 a barrel.
