Oil corporation BP has reported exceptional performance from its trading arm in the first quarter of the year, attributed to the Middle East conflict. Since the beginning of the conflict at the end of February, BP’s market value has surged to over £90 billion.
Rising oil prices have led to significant profits for oil producers, while consumers face the impact through higher fuel prices and the potential for increased energy and food costs.
BP’s oil trading arm experienced robust performance over the past three months, bouncing back from a weak end to 2025. The company cited the ongoing Middle East situation and market volatility in crude oil, natural gas, and refined product prices as key factors driving its success.
Oil prices have sharply risen since the onset of the US-Israel war with Iran on February 28, climbing over 60% year-to-date. Brent crude nearly hit $120 per barrel and remains around $100 amid concerns of a global energy supply crisis.
BP revealed that Brent crude prices averaged $81.13 per barrel in the first quarter, including the impact of the Middle East conflict. The company estimates that a one-dollar change per barrel affects pre-tax operating profits by £340 million.
Following a similar trend, rival Shell also reported strong results in oil trading, reflecting the industry’s favorable conditions. Analysts have raised profit forecasts for BP by 20%, projecting earnings of £1.9 billion for the quarter.
BP’s new CEO, Meg O’Neill, continues the company’s strategy to redirect investments from low-carbon projects to enhance oil and gas profitability. Shareholders will convene for the annual general meeting on April 23 to discuss these developments.
Despite the positive outlook for oil companies, concerns have been raised regarding the impact on consumers. The increase in energy prices due to the conflict highlights the disparities between corporate gains and household financial strains, emphasizing the need for sustainable energy solutions.
