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Iranian state TV reports explosions on the Strait of Hormuz island during ‘exchange of fire’; Oil prices tumble five percent after US President Donald Trump says once again that an agreement could be near following positive talks, and Iran says it would pass on its latest position to the mediator, Pakistan.

Day 69: All you need to know about US-Israel war on Iran

Web Desk

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.

Business

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.

Articles tagged with "Strait of Hormuz Crisis"

Day 69: All you need to know about US-Israel war on Iran

Crisis pays: BP posts first quarter $3.2B profit