Shell profits double as oil prices rise after Iran war disrupts energy supplies

Shell has reported a sharp rise in second-quarter profits after the Iran war pushed up oil prices and disrupted global energy supplies. The company said earnings for the April-to-June period reached $9.84bn, more than double the $4.26bn recorded a year earlier. The increase came as the conflict affected flows of oil and liquefied natural gas through the Strait of Hormuz, a key route for global energy shipments.

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Chief executive Wael Sawan said Shell's operational performance had delivered very strong results during what he described as another quarter of severe disruption in global energy markets. The company also said its first-half earnings totalled $16.76bn, after profits of $6.92bn in the first three months of the year. That represents a 70% rise in earnings for the first half compared with the same period last year.

The earnings update reflects how quickly conflict in the Gulf can affect energy markets far beyond the region. Brent crude, the global benchmark, was around $73 a barrel before the war began, then rose above $120 before easing back below $100. Such swings can widen the gap between buying and selling prices, which can improve trading margins for large energy companies.

Shell is among several major energy groups that have benefited from the price moves, alongside BP and Norway's Equinor. The gains underline the extent to which oil and gas producers can be exposed to geopolitical shocks, even when the disruption is centred on shipping routes rather than direct damage to production sites. The Strait of Hormuz remains one of the world's most closely watched chokepoints because of its role in moving energy supplies from the Gulf to international markets.

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The figures also add to a broader pattern of strong earnings for companies able to trade through volatile markets. In this case, the conflict has created both higher prices and greater uncertainty over supply, which has fed into trading activity. That has made the quarter significant not only for Shell's balance sheet, but also for the wider energy market.

What remains unclear is how long the disruption will continue and whether shipping through the Strait of Hormuz will stabilise. Further changes in Brent crude could affect future earnings for Shell and other producers. Investors will also be watching for any sign that the conflict eases or that supply routes reopen more fully.

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