Shell has announced a surprising profit of $6.9 billion (£5 billion), significantly benefiting from rising energy prices amid the ongoing conflict in Iran, a development that has drawn ire from environmental advocates.
The largest oil and gas company in Europe reported a remarkable 115% increase in profits for the first quarter, up from $3.2 billion in the last quarter of 2025.
This figure exceeded the $6.4 billion anticipated by financial analysts and represented a 24% rise from the $5.6 billion profit recorded during the same timeframe the previous year.
Wael Sawan, Shell’s CEO, attributed the company’s success to a “relentless focus on operational performance” during a quarter characterized by significant upheaval in global energy markets.
The blockage of oil and gas supplies through the Strait of Hormuz led to a surge in international crude prices, which escalated from approximately $61 per barrel in January to peaks of $119 by the end of March, and again at the end of April.
On Wednesday, oil prices fell below the $100 mark in anticipation of a potential peace agreement between the US and Iran, although current market prices remain over 50% higher than the previous year. As of Thursday, Brent crude saw a slight increase of 0.3%, reaching $101.
This rise in oil prices also benefited BP, which reported an unexpected profit of $3.2 billion for the first quarter, more than doubling the $1.38 billion profit from the same period last year.
BP attributed this achievement to “exceptional oil trading,” which sparked immediate backlash from advocacy groups and renewed demands for stricter windfall taxes on fossil fuel profits.
Shell’s profit surge has rekindled discussions about implementing taxes to support households severely affected by rising costs.
Danny Gross, a climate activist with Friends of the Earth, remarked, “Fossil fuel companies are reaping enormous profits while consumers face rising petrol prices and households brace for increased energy bills. Our dependency on fossil fuels diverts funds from ordinary people to the wealthy and powerful. The solution is straightforward: enhance the windfall tax on these outrageous profits and transition to renewable energy sources, which would lower energy costs, bolster the UK’s energy security, and shield everyone from future price surges.”
Anne Jellema, executive director of the climate organization 350.org, stated, “As people worldwide grapple with escalating energy costs, Shell is accumulating billions in excess profits. The very crisis that is generating these windfalls is pushing millions closer to starvation and hardship. Governments must take immediate action to tax these surplus profits and utilize the funds to safeguard vulnerable households and promote affordable, domestic renewable energy.”
Shell’s oil and gas output experienced a 4% decline compared to the previous quarter, attributed to the ongoing conflict in the Middle East. The company indicated it would take about a year to address the damage caused by an attack on one of the two trains at its Pearl gas facility in Qatar, which had halted production in March.
