In spite of the US-Israel war on Iran and the virtual closure of the Strait of Hormuz, oil supermajor BP reports that its profits have more than doubled in the first quarter of 2026. Funny how that can happen, isn’t it?
Trump and Netanyahu first launched their illegal strikes against Iran on 28 February. In retaliation, Iran, and later the US, virtually closed the Strait of Hormuz to shipping traffic. Under usual circumstances, around 20% of the world’s oil and 33% of its liquid natural gas would pass through the Strait.
Unsurprisingly, the closure of the Strait sent oil prices spiralling. Brent crude — which acts as the global benchmark for oil pricing — cost around $73 a barrel before the war. Now, that price has shot up to roughly $110 a barrel.
BP’s Q1 profits include March, the first month of the blockade. Over the first 3 months of 2026, the oil giant recorded almost $3.2bn in profits. More specifically, these profits are measured according to underlying replacement costs (RC), which takes into account the cost of obtaining more oil.
For comparison, BP made $1.54bn replacement cost profit in the last quarter of 2025, immediately before the war. Likewise, it also made $1.38bn in Q1 last year — the same time of year it made more than double that year — exceeding analysts’ expectations.
‘Helping minimise disruption’ are you?
The oil giant’s newly appointed CEO, Meg O’Neill, stated that:
It’s a privilege and an honour to serve as BP’s CEO. I join at a time when our industry is operating in an environment of conflict and complexity, playing a vital role in keeping energy flowing.
BP’s team has been working relentlessly to keep our assets producing safely, reliably and efficiently. We are working with customers and governments to get fuel where it’s needed, helping minimize disruption and the impact it can have on people’s lives.
Well that’s nice, isn’t it? If you ask us, refraining from profiteering from a global crisis would be an even better way of minimising disruption – but that’s why we’re not oil barons, we suppose.
O’Neill joined BP as its CEO less than a month ago, on 1 April, after working at ExxonMobil. She receives a base salary of £1.6m.
‘Fossil fuel giants are quids-in’
Both environmental and consumer groups have expressed outrage at BP’s blatant profiteering. Head of science, policy and research at Friends of the Earth, Mike Childs, stated that:
Just as we saw in 2022 following Russia’s invasion of Ukraine, fossil fuel giants are quids-in when global instability drastically inflates fuel prices.
But again, it’s ordinary people who pay the price when soaring energy prices threaten to plunge the UK into an even deeper cost of living crisis.
Analysis from Global Witness recorded profit spikes for BP, Shell, Chevron, ExxonMobil and TotalEnergies in the year following the dawn of Putin’s war on Ukraine. Over the 4 years of the Russia-Ukraine conflict, the five companies have raked in $467bn (almost half a trillion) in profits.
Likewise, analysis from 350.org has shown that oil and gas companies have siphoned $100bn from ordinary people over the first month of the war on Iran.
UK households are currently shielded from the worst of the impacts of the fuel profiteering by the energy price cap. However, estimates predict that the cap may rise by as much as £200 following its July revision.
Taxation isn’t enough
Caitlin Boswell, deputy director at Tax Justice UK, urged the UK government to tax the excess earnings of war profiteers:
It is outrageous that households are getting hammered on all sides from rising bills and prices of essentials, while companies like BP are doubling their profits, all from the same crisis. The government needs to get a grip on the situation to stop companies from callous profiteering, whether in the energy sector, banking or defense.
We need the government to remain steadfast in maintaining the windfall tax on oil and gas companies, and apply additional excess profits taxes on those profiting from the crisis. That way, the government can recoup all unearned profits to help people get through the affordability crisis and make the UK more resilient to future shocks.
Right on cue, around noon on 28 April, energy secretary Ed Miliband announced:
It would be completely wrong for a Government to stand by and allow companies to make excess profits from a war.
That’s why we’re taxing these windfall profits to help with the cost of living.
And why the Tories, Reform and the SNP are utterly wrong to oppose the windfall tax.
However, rather than a new tax, Miliband is likely referring to the existing energy profits levy. The government imposed this windfall tax in the wake of Putin’s attacks on Ukraine.
BP profits show that, as prices surge for ordinary people worldwide, big oil shows no shame in profiteering from war and ruin. What’s more, even the windfall tax is failing to make an appreciable dent in the company’s profits — and it’s certainly not stopping the oil major’s amoral practices.
When a handful of companies have a stranglehold on daily life for people the world over, taxation isn’t enough.
Featured image via the Canary
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