Shell has reported a significant increase in profits for the first quarter of 2026, with adjusted earnings rising to $6.92 billion, a 24% increase from the same period last year. This surge is largely attributed to the escalation of the conflict in Iran, which has led to a substantial rise in global oil prices.
The Iran conflict has disrupted oil supply routes, particularly through the Strait of Hormuz, a critical passage for global oil shipments. This disruption has caused Brent crude oil prices to climb back to around $90 per barrel, up from a low of $70 earlier in the year.
Shell's trading division has capitalized on this volatility, benefiting from higher refining margins and increased demand for oil products. However, the company has also faced challenges, including a 4% decline in oil and gas production due to damage at its Pearl gas plant in Qatar, which is expected to take about a year to repair.
The surge in profits has sparked criticism from climate campaigners, who accuse Shell of profiting from a conflict that has led to higher energy prices for consumers. They are calling for increased windfall taxes on fossil fuel companies to support households affected by rising costs.
Looking ahead, the future of oil prices remains uncertain, depending on the duration of the conflict in Iran and potential geopolitical developments. Consumers may continue to face elevated fuel prices unless a sustainable peace deal is reached.