BP profits more than double as Iran war sends oil prices higher

Apr 28, 2026 · policy · Source ↗

TLDR

BP posted $3.2bn Q1 profit, more than doubling year-ago $1.38bn, driven by an “exceptional” oil trading performance amid Hormuz volatility.

BP’s customers and products division (oil trading) surged to $2.5bn profit from just $103m a year ago as Hormuz closure amplified bid-ask spreads.
Brent crude swung from ~$73/barrel pre-conflict to nearly $120, settling around $110; volatility itself is the trading profit engine.
Upstream production remained flat and is expected to dip in Q2 due to Middle East disruption affecting extraction facilities.
UK Energy Profits Levy applies only to North Sea extraction, not overseas trading gains – leaving most of BP’s windfall outside its scope.
UK household energy price cap is estimated to rise ~£200 in July as wholesale gas and oil prices feed through to retail.

Discussion is sparse; commenters focused on historical irony rather than trading mechanics, tax policy, or Hormuz supply chain risk.
No substantive debate on whether the windfall tax structure adequately captures trading-side gains versus extraction-side gains.