BP has reported a sharp rise in quarterly profits as soaring oil and gas prices, driven by conflict in the Middle East, continue to reshape global energy markets.
The energy giant posted underlying profits of $3.2bn (£2.4bn) for the first quarter, more than doubling from $1.38bn a year earlier. The results exceeded market expectations and mark the company’s strongest performance since 2023.
BP said the increase was largely fuelled by exceptional trading in oil markets, as prices surged following the escalation of tensions involving Iran and disruption to key shipping routes such as the Strait of Hormuz.
Global benchmark Brent crude climbed above $110 a barrel, reflecting ongoing volatility in supply as geopolitical risks intensify.
Chief executive Meg O’Neill said the company was operating in a complex global environment, adding that BP was working closely with governments and customers to maintain energy supply and reduce disruption.
However, the profit surge has drawn criticism from campaign groups, who argue that energy firms are benefiting while households face rising living costs.
Global Witness said the results highlight how major oil companies continue to profit during periods of global instability, while consumers absorb the impact through higher fuel and energy bills.
Similarly, Greenpeace UK warned that the situation underscores the vulnerability of economies reliant on fossil fuels, calling for faster investment in renewable energy.
The End Fuel Poverty Coalition said the figures reinforce the need for continued windfall taxes on energy firms, as UK households brace for further increases in bills.
Energy costs are expected to rise again in July when the next price cap is announced by Ofgem, with average household bills forecast to approach £2,000 annually.
Meanwhile, Chancellor Rachel Reeves has ruled out broad financial support measures, indicating that any assistance will be targeted at the most vulnerable households.
BP’s strong performance was driven in part by its customers and products division, which includes trading operations. This segment generated $2.5bn in profit, a significant increase compared with both the previous quarter and the same period last year.
Despite the earnings boost, the company reported rising net debt, which climbed to $25.3bn, reflecting lower operating cash flow during the period.
BP warned that future performance remains uncertain, with fuel margins expected to remain sensitive to ongoing geopolitical tensions and supply conditions in the Middle East.
As global energy markets remain tightly linked to geopolitical events, analysts expect continued volatility, with implications for both corporate profits and household energy costs across the UK.