Oil Companies Report Higher Profits; Middle East Conflict Disrupts Supply

mid-March 2026, two weeks after the start of the U.S.-Israel war on Iran, the market capitalization of the world's six largest energy firms increased by a combined $130 billion, according to calculations by the Guardian. BP, a U.K.-based energy company, reported $3.2 billion in profits for the first quarter of 2026, compared to $1.38 billion in the same period of 2025.

The company announced these results on Tuesday. Other firms, including Shell and TotalEnergies, have indicated expectations of higher profits for the quarter, with Shell set to release results on May 7 and TotalEnergies on Wednesday.

The Strait of Hormuz remains impassable, locking up one-fifth of the world's petroleum in the Persian Gulf. Oil prices rose from $73 per barrel before the war to over $100 in its early days, with Brent crude currently at around $110 per barrel. Iranian air strikes have damaged gas production sites in the Gulf, affecting natural gas outlook, though higher oil prices have offset this for companies.

An analysis by the Guardian and Rystad Energy found that the top 100 oil and gas companies earned an extra $30 million per hour during the war's first month due to higher prices. If prices stay around $100 per barrel, annual profits could reach $264 billion, according to the analysis.

Oxfam International reported that six major fossil fuel companies—Chevron, Shell, BP, ConocoPhillips, Exxon, and TotalEnergies—are earning nearly $3,000 per second in 2026, projecting total profits of $94 billion for the year, $37 million more per day than in 2025.

prices have risen globally.

In the U.S., the average price is $4.18 per gallon, the highest since the war began and since April 2022, according to AAA. In Europe, drivers paid an extra €150 million per day in the war's opening weeks, adding €220 per driver annually, as reported by Transport & Environment.

A Pew poll published earlier this month found that seven in 10 Americans are very or extremely concerned about the war's impact on fuel prices, with only 9% saying it is not a major concern. Opinions on the war are split along partisan lines, with most polls indicating a majority disapprove of the Trump administration's handling of the conflict.

Global Witness issued a statement on BP's results. More than 70 environmental and advocacy groups in the U.S. submitted a letter last month supporting a windfall tax on oil and gas firms, stating that revenue should offset rising costs for households.

In the U.K., a windfall tax charges energy companies an extra 38% on oil and gas production, implemented in 2022 and extended last year. Several European nations, including Spain, Italy, and Portugal, are petitioning the EU to revive a similar system last used in 2022 during Russia's invasion of Ukraine.