BP has reported a sharp surge in profits after global energy markets were jolted higher by escalating tensions in Iran, prompting accusations that households are paying the price for corporate windfalls.
The FTSE 100 energy major said underlying replacement cost profit jumped more than 130pc to $3.2bn (£2.4bn) in the first quarter of 2026, up from $1.38bn (£1.02bn) a year earlier and ahead of analyst expectations of $2.67bn.
The increase has been driven largely by the sharp rise in oil prices following renewed instability in the Middle East, with Brent crude trading well above $100 a barrel and briefly approaching $120 amid fears of a broader energy supply shock.
Campaigners and anti-poverty groups accused the company of benefiting from global instability while consumers face higher fuel costs at the pump and the prospect of rising energy bills when the price cap is next revised in July.
Mike Childs of Friends of the Earth said fossil fuel companies were “quids in” during periods of international conflict, arguing that ordinary households were being left exposed to volatile global markets.
The End Fuel Poverty Coalition called for a renewed windfall tax on energy firms, saying the scale of profits underscored the imbalance between corporate gains and household costs.
BP’s new chief executive Murray Auchincloss said the company was focused on maintaining stable supply amid volatile conditions, stressing its role in ensuring fuel continues to flow to customers and governments during a period of heightened uncertainty.
He said teams across the business were working to keep operations safe and efficient while supporting global energy flows, describing the environment as “incredibly challenging”.
Oil markets have surged since late February, when conflict involving Iran escalated and triggered concerns over supply disruptions. Prices have risen by more than 60pc so far this year, with volatility amplified by stalled diplomatic efforts.
BP’s trading arm and customers division delivered particularly strong results, posting profits of $2.5bn compared with $1.4bn in the previous quarter and just $103m a year earlier, as traders capitalised on rapid price swings in crude markets.
The company’s shares rose around 3pc in early trading following the update, extending gains of more than a third over the past six months.
However, climate campaigners including Greenpeace UK accused the oil industry of profiting from “human misery”, arguing that continued public support for fossil fuels was incompatible with rising consumer costs and climate goals.
The results highlight a familiar tension for policymakers: while higher oil prices bolster energy company earnings and government tax receipts, they also risk feeding inflation and tightening pressure on households already struggling with the cost of living.
With geopolitical risks still elevated and energy markets on edge, analysts warn that further volatility is likely — and that the windfall enjoyed by producers may come at a growing political cost.
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