Shell latest oil giant to see profits surge due to Iran war impact

Shell reported a surge in first-quarter profits to $6.92bn, up from $5.58bn a year earlier, as oil prices soared following the outbreak of the US-Israel war with Iran [1]. The conflict has effectively closed the Strait of Hormuz, a chokepoint for roughly 20% of global oil and LNG supplies, causing severe market disruption [1]. Brent crude prices, which were around $73 a barrel before the war, have seen sharp swings, peaking above $120 and currently standing at about $101 [1]. Shell CEO Wael Sawan attributed the "strong results" to "operational performance in a quarter marked by unprecedented disruption in global energy markets" [1]. The company's profits were boosted by higher refining margins and its oil trading business, which benefits from volatile price spreads [1]. However, Shell's oil and gas output fell 4% compared to the previous quarter, with its LNG production in Qatar shut down and its Pearl GTL site damaged by attacks [1]. The profit surge follows similar reports from rivals; BP's first-quarter profits more than doubled last week, and Norway's Equinor posted its highest quarterly profit in three years at $9.77bn [1]. The renewed windfall for energy giants has drawn criticism. Environmental group Friends of the Earth called for a strengthened windfall tax, stating fossil fuel firms are "pocketing monstrous profits while drivers are being squeezed at the petrol pump" [1]. In the UK, energy firms are subject to an Energy Profits Levy, a windfall tax introduced in 2022 after Russia's invasion of Ukraine and extended to 2030, though it only applies to UK extraction profits [1]. The spike in wholesale prices is expected to raise the UK's energy price cap by about £200 in July [1].