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ISLAMABAD: BP (British Petroleum) has reported one of its strongest profit performances in recent years, even as the global oil market faces severe disruption from the Strait of Hormuz crisis and the ongoing war in Iran. The British energy giant posted first-quarter underlying replacement cost profits of $3.2 billion, more than doubling from a year earlier and exceeding analyst expectations by about 20%, Reuters reported.&nbsp; Sky News highlighted that these were BP&rsquo;s first results since the war in Iran began, with profits rising sharply as the conflict drove up global oil prices.&nbsp; The report noted that benchmark prices surged after attacks effectively closed the Strait of Hormuz, through which around one-fifth of global oil and liquefied natural gas normally flows.&nbsp; Despite oil averaging only about $81 per barrel during the quarter, BP&rsquo;s profits more than doubled, reflecting what the company itself described as &ldquo;exceptional oil trading,&rdquo; according to Sky News.&nbsp; This highlights a key dynamic in the current crisis: While many oil companies have faced losses from disrupted supply chains, stranded shipments and higher insurance costs, firms with large trading operations have been able to capitalize on price volatility.&nbsp; <div><div style="display: flex; max-width: 550px; width: 100%; margin-top: 10px; margin-bottom: 10px; line-height: 2;"><iframe scrolling="no" frameborder="0" allowfullscreen="true" title="X Post" src="https://platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-1&features=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%3D%3D&frame=false&hideCard=false&hideThread=false&id=2049013102960591000&lang=en&origin=https%3A%2F%2Fmain.d1wrm1qseko1cp.amplifyapp.com%2Farticles%2F&sessionId=119ed3eb553d52f70f38ab3053361340efbc9998&theme=light&widgetsVersion=2615f7e52b7e0%3A1702314776716&width=550px" style="position: static; visibility: visible; width: 550px; height: 641px; display: block; flex-grow: 1;" spellcheck="false"></iframe></div></div>Reuters reported that BP&rsquo;s trading division was a major driver of earnings, benefiting from supply disruptions and sharp market swings triggered by the conflict. The broader oil market, however, remains under strain. The closure of Hormuz has disrupted shipments, cut output and created legal and logistical challenges for producers and traders, even as prices surged.&nbsp; These disruptions have forced companies to reroute cargoes, absorb higher costs and deal with delayed deliveries. BP itself was not immune to these pressures. Reuters reported that the company relied on increased production in the United States to offset disruptions to Gulf flows, while its net debt rose to $25.3 billion due to working-capital impacts linked to the crisis.&nbsp; The profit surge has raised concerns about rising energy costs for consumers, as higher oil prices linked to the war continue to feed into fuel and household energy bills, Sky News said. The results underscore a widening divide in the oil industry.&nbsp; While the market faces instability and supply risks, companies like BP with strong trading arms are turning volatility into record earnings, even as the broader energy system remains under stress.

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British Petroleum (BP) posted $3.2 billion in quarterly profit as oil volatility from the Iran war and Hormuz crisis boosted trading earnings, despite disrupted shipments, rising debt and consumer cost concerns.

Crisis pays: BP posts first quarter $3.2B profit

PARIS: A study commissioned by Greenpeace said on Wednesday that oil companies have been making more than 80 million euros a day in &quot;war profits&quot; in the European Union since the start of the war in the Middle East. &quot;If this level persists, the oil companies can expect additional operating profits of approximately 2.5 billion euros ($2.9 billion) for the month of March alone,&quot; the study said. The study examined the difference between the price of crude oil and the price of fuel at the pump between January and February 2026, and the first three weeks of the war in March. &quot;The report shows that the rise in prices at the pump is far greater than that of underlying crude oil prices,&quot; Greenpeace said in a statement. The increase in margins was much greater for diesel fuel than for petrol. &quot;Compared with the pre-war months, the oil companies earned a daily excess profit of 75.3 million euros from the sale of diesel fuel to cars and trucks,&quot; the report said. &quot;Petrol sales contributed 6.1 million euros per day.&quot; Margins were expanded predominantly in countries with high purchasing power such as the Netherlands, Sweden, Denmark, Austria and Germany, the report said. In Germany, excess profits stood at 23.8 million euros per day, followed by France, at 11.6 million euros per day. &quot;Greenpeace France is calling on European governments to introduce permanent additional taxes on the profits of oil and gas companies, the proceeds of which would be used to reduce energy bills and accelerate European energy independence,&quot; the environmental group said. The United States and Israel launched strikes against Iran on February 28, triggering a regional conflict that has caused global oil and gas prices to surge and sparked fears of fuel shortages, especially in import-reliant Asia. Last week, the price of diesel in France hit its highest level since 1985, surpassing the peaks reached after Russia&#39;s invasion of Ukraine in 2022. Under increasing pressure, many governments have rolled out measures to limit the impact of supply difficulties and soaring energy prices.

A Greenpeace-commissioned study said oil companies in the EU are making over 80 million euros a day in excess profits during the Middle East war, driven mainly by sharply higher diesel margins.

Articles tagged with "Oil Companies"

Crisis pays: BP posts first quarter $3.2B profit

Greenpeace accuses oil companies of reaping Mideast 'war profits'