Energy Firms See Profit Surge Amid Iran Conflict

The article reports that Shell's profits have risen in the first quarter of the year due to the sharp increase in oil prices following the start of the Iran war. Shell reported profits of $6.92bn, higher than analysts' expectations and up from $5.58bn in the same period last year. The rise in oil prices is attributed to the conflict in the Strait of Hormuz, a critical waterway for global oil supplies. Shell's oil trading business was a key factor in the profits rise, while its oil and gas output fell by 4% due to the conflict. The article also mentions that rival energy giant BP reported a more than doubling of its profits in the same period.

Shell reported a stronger-than-expected first-quarter profit of $6.92 billion, beating analyst expectations, as the Iran war drove energy prices higher. The oil giant's adjusted earnings were up from $5.58 billion in the same period last year and $3.26 billion in the final quarter of 2025. Shell cut its quarterly buyback to $3 billion and increased its dividend by 5%. The company's net debt rose to $52.6 billion due to the working capital effect of rising oil prices. Shell recently announced a $16.4 billion deal to buy Canadian energy company ARC Resources to boost output.

The article discusses how the recent Iran war has accelerated the clean energy transition, benefiting wind power giants Vestas and Orsted, as well as oil and gas major Equinor. The companies reported strong first-quarter earnings, with Vestas and Orsted citing improved execution and the Iran war as a catalyst for clean tech investment. Equinor's CFO stated that the Middle East crisis will boost returns in its clean tech division, driven by a shift from decarbonization to energy security and self-sufficiency. Analysts expect the energy shock to prompt countries to invest more in clean energy resources, benefiting companies with exposure to green tech.