Shell profits rise as Iran war pushes oil prices higher

Shell reported first-quarter profits of $6.92bn, a significant rise from $5.58bn a year earlier, as the conflict in Iran drove oil prices to exceed $120 a barrel [1]. The price of Brent crude oil, which stood at about $73 a barrel before the conflict, has seen sharp swings, currently trading at about $101 [1]. Chief executive Wael Sawan said the results were enabled by a "relentless focus on operational performance in a quarter marked by unprecedented disruption in global energy markets" [1]. However, Shell's oil and gas output fell by 4% compared with the final quarter of last year, partly due to damage to its Qatari Pearl gas plant from the conflict [1]. The closure of the Strait of Hormuz, a key transit route, has been a major factor in market volatility [1]. Last week, rival BP reported its first-quarter profits had more than doubled [1]. The surge in profits has drawn criticism from environmental groups. Danny Gross, a climate campaigner at Friends of the Earth, called to "strengthen the windfall tax on these indefensible profits" [1]. Energy firms operating in the UK are subject to the Energy Profits Levy, a windfall tax introduced in 2022 and extended to March 2030, though it only applies to UK extraction profits [1]. The recent jump in wholesale prices is estimated to raise the UK's energy price cap by about £200 when it is revised in July [1].