Oil company BP has reported a strong performance by its trading division in the first quarter of this year, attributing it to the ongoing Middle East conflict. Since the conflict began in late February, BP’s market value has surged to over £90 billion. The spike in oil prices has resulted in significant profits for oil producers, while consumers are feeling the impact through higher fuel prices and the looming threat of increased energy and food costs.
BP highlighted the positive performance of its oil trading arm in the past three months, following a weaker end to 2025. The company mentioned that the Middle East conflict and current market conditions have led to increased price volatility in crude oil, natural gas, and refined products, impacting financial results and working capital movements. Oil prices have risen by over 60% since the start of the US-Israel conflict with Iran on February 28, with Brent crude hitting close to $120 per barrel.
Brent crude prices averaged $81.13 per barrel in the first quarter, with BP noting that every one-dollar change in oil prices affects pre-tax operating profits by approximately £340 million. Analysts at Citi have raised profit forecasts for BP by 20%, estimating earnings of £1.9 billion for the quarter. The company’s recent update aligns with that of rival Shell, which also reported strong results in oil trading.
Meg O’Neill, BP’s fifth chief executive since 2020, has pledged to continue redirecting investments from low-carbon projects to oil and gas to enhance profitability. Shareholders will convene for the company’s annual general meeting on April 23, amidst some opposition to the board’s decisions. The impact of the Middle East conflict on BP’s business operations is expected to be more pronounced in the second quarter due to pricing mechanisms.
Simon Francis from the End Fuel Poverty Coalition criticized BP for labeling its gains from the Iran conflict as “exceptional,” highlighting the disparity between the company’s profits and the financial strain on households. As BP and other oil giants reap substantial profits, concerns over rising energy costs persist among the public. The dependence on fossil fuels in the UK is seen as detrimental to the population, with calls for a shift towards renewable energy sources to mitigate economic shocks and address climate concerns.
