BP reports four-year-high profits as Middle East war pushes up oil prices
BP has reported quarterly profits of $5.73bn, its highest in four years, after the war in the Middle East drove up oil prices. The oil company said Brent crude averaged $103.85 a barrel in the April-to-June period, compared with $67.88 in the same quarter a year earlier. The rise in crude prices has also fed through into higher petrol, diesel and household energy costs in many places.
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The profit figure was more than double the $2.35bn BP made in the same period last year. It was also the company's strongest quarterly result since the start of the Russia-Ukraine war in 2022. BP said the increase reflected the impact of disruption to global oil and gas supplies through the Strait of Hormuz after the outbreak of conflict involving Iran earlier this year.
Chief executive Meg O'Neill said the company was not reaching its full potential, even as it posted the stronger earnings. BP also confirmed plans to sell its US renewable natural gas business, Archaea, as part of a further shift away from clean energy. The company, which employs nearly 14,000 people in the UK, has also announced plans to put its North Sea business up for sale, a move that would end 60 years of production in the region by the company.
The results matter because they show how quickly geopolitical conflict can affect global energy markets and corporate earnings. Higher oil prices can lift profits for producers while increasing costs for consumers and businesses. That tension has again drawn criticism from environmental and poverty campaigners, who accused BP of profiting from the price surge.
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The latest figures also underline BP's changing strategy under pressure to prioritise returns over lower-carbon investments. O'Neill said the company would focus on assets with the strongest potential to deliver competitive returns and long-term value. That approach marks a clear departure from earlier commitments to move more quickly into clean energy.
What remains unclear is how long the elevated oil price environment will last and whether supply disruption in the region will ease. Investors will also be watching whether BP follows through on the planned asset sales and how they affect the company's wider portfolio. The next key signals are likely to come from further market moves in crude prices and any new guidance from the company on its strategic shift.
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