BP Q1 Profits Surge Amid Escalating Middle East Conflict

BP reported a first-quarter underlying replacement cost profit of $3.2 billion, significantly surpassing the $2.63 billion consensus estimate. The energy major attributed the strong performance to exceptional contributions from oil trading and improved midstream results. This financial windfall coincides with extreme volatility in global energy markets following the outbreak of the U.S.-Israeli war against Iran on February 28. The International Energy Agency has characterized the ongoing and severe disruptions in the strategically vital Strait of Hormuz as the most significant energy security threat in history. BP's equity has responded positively to the environment, with shares rallying more than 32% in 2026. This surge makes BP the second-best performing oil supermajor this year, trailing only France's TotalEnergies, and marks a recovery from previous years of underperformance and takeover speculation. However, the company faces internal friction. At a recent annual general meeting, shareholders rejected motions to allow online-only meetings and to retire specific climate disclosure obligations. The rebellion also saw weakened support for Chair Albert Manifold and calls for the company to justify its capital discipline regarding oil and gas investments.