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

BP reported on April 28, 2026 that its first-quarter 'underlying replacement cost' (RC) profit rose to $3.2 billion, more than double the figure a year earlier and ahead of analyst expectations. The company said the result reflected a strong performance across its customers and products operations.

In a trading statement published earlier in April, BP had flagged that oil trading was expected to be 'exceptional' in the quarter amid heightened volatility in crude and refined product markets linked to the conflict in Iran and the wider Middle East. That preview was borne out in the final numbers as trading and midstream performance materially outperformed the prior quarter.

Market participants note that the surge in oil prices following the outbreak of hostilities contributed directly to trading gains, while working capital movements related to higher commodity prices pushed net debt higher; BP reported net debt of about $25.3 billion at quarter end. The company also warned that fuel margins would remain sensitive to supply conditions in the Middle East.

The immediate market impact is two‑fold: oil majors and traders can book substantial trading revenue during episodes of extreme price volatility, while consumers and energy‑intensive sectors face higher input costs and inflationary pressure. For BP, the quarter underlines the commercial value of an integrated downstream and trading capability, but it also highlights balance‑sheet sensitivity to rapid price moves.

Analysts expect BP's near‑term outlook to hinge on whether trading results can be sustained as markets calm and on the company's ability to reduce elevated net debt once working capital normalizes. Investors will also watch production guidance and refining margins in coming quarters, and how management balances debt reduction with capital returns amid a still‑uncertain geopolitical backdrop.