BP, a major player in the oil industry, reported outstanding performance by its trading division in the first quarter of this year, attributed to the ongoing Middle East conflict. The company’s market value has surged to over £90 billion since the conflict began in late February.
The increase in oil prices has resulted in significant profits for oil producers, while consumers are experiencing higher costs at the gas pump and are concerned about potential spikes in energy and food prices.
Following a weak end to 2025, BP’s oil trading arm showed remarkable strength in the past three months, with notable impacts from the Middle East situation and market volatility affecting oil, natural gas, and refined products prices.
The company anticipates that these market conditions will influence financial outcomes, including trading results and working capital movements, emphasizing the impact of price lags.
Since the onset of the US-Israel conflict with Iran on February 28, oil prices have climbed by over 60% this year, with Brent crude nearing $120 a barrel and currently hovering around $100 due to uncertainties in peace negotiations and concerns over a potential global energy supply crisis.
BP noted that Brent crude prices averaged $81.13 per barrel in the first quarter, including the period of volatility linked to the Middle East conflict. The company disclosed that a one-dollar change per barrel in oil prices results in a £340 million impact on pre-tax operating profits.
Analysts at Citi have raised profit forecasts for BP by 20%, estimating earnings of £1.9 billion for the quarter.
Meg O’Neill, BP’s fifth CEO since 2020, reaffirmed the company’s strategy to redirect investments from low-carbon projects to oil and gas operations to enhance profitability. Shareholders will convene for the annual general meeting on April 23, with potential opposition from proxy advisers and shareholders against the board’s decisions.
Industry expert Dan Coatsworth from AJ Bell highlighted the impact of the Middle East conflict on BP’s business, noting that the surge in oil prices has not yet translated into immediate benefits for the company due to pricing mechanisms. However, BP’s trading operations have seen immediate gains, with the first quarter described as ‘exceptional.’
Simon Francis of the End Fuel Poverty Coalition criticized BP’s significant gains from the Iran conflict, contrasting the profits with the financial strain faced by households. He highlighted public concerns over rising energy costs amid the windfall for oil companies.
Robert Palmer from Uplift emphasized the disparity between oil companies’ profits and the financial burden on consumers, urging a shift towards renewable energy solutions to mitigate economic shocks and support those most affected.