Oil giant benefits from surging crude prices as conflict disrupts global energy supply

LONDON — Shell posted robust first-quarter profits of $6.92 billion in adjusted earnings, significantly exceeding analyst expectations and nearly doubling results from the previous quarter, as the ongoing U.S.-Iran war drove oil prices sharply higher.

The company’s earnings comfortably beat forecasts of around $6.1 billion and marked a strong increase from the $5.58 billion reported in the same period a year earlier. Much of the surge in profitability was directly linked to the conflict that erupted on February 28, which disrupted approximately one-fifth of global oil and liquid gas supply.

Brent crude prices climbed from around $72 per barrel to near $100, briefly spiking toward $120 following Iran’s near-total shutdown of the Strait of Hormuz. While the war damaged Shell’s gas production operations in Qatar, the company’s trading division capitalized on the extreme market volatility, helping to boost overall earnings.

The impressive results have reignited international criticism of Big Oil’s windfall gains during global crises. Oxfam estimates that the largest oil companies are on track to generate $94 billion in profits this year. In response, five European Union member states — including Germany, Italy, and Spain — are advocating for a bloc-wide windfall tax on excess fossil fuel earnings.

Shell has not commented publicly on the growing calls for taxation as it continues to navigate the complex impacts of the geopolitical conflict on its global operations.