Shell profits more than double as oil traders exploit Middle East conflict volatility
Shell has reported profits of £7.29 billion for the three months to June 30, more than doubling from £3.2 billion in the same period last year, in what represents the energy giant's second-highest quarterly profit on record.
The exceptional results were driven primarily by oil traders capitalizing on extreme price volatility caused by the US-Iran war, which erupted on February 28, 2026, disrupting global energy supplies through the Strait of Hormuz, a critical shipping route carrying approximately 20% of the world's seaborne oil trade.
Brent crude oil prices surged dramatically following the outbreak of conflict, peaking at over $126 per barrel on April 30, 2026—a 38% increase from pre-war levels. Prices have since moderated to around $91 per barrel, but remain significantly elevated compared to the $72 levels seen before the war began.
Shell's products business, which processes, buys and sells crude oil and fuels, posted an extraordinary increase in second-quarter adjusted earnings of more than 700% from a year earlier, driven by disruption to global trade flows.
The bumper profits come as UK motorists continue to face elevated fuel costs. Petrol prices peaked at 158.17 pence per litre in mid-April 2026, with diesel reaching 192.14 pence per litre during the same period. While prices have declined slightly to around 156p and 174p respectively by late July, they remain substantially higher than pre-conflict levels of approximately 131 pence per litre.
The Royal Automobile Club predicts petrol prices could surpass 160 pence per litre this Friday, marking a new peak since the conflict began. The impact has been felt globally, with fuel prices rising in 106 countries during the first three weeks of the war.
Sharp criticism from campaigners
Howard Cox, founder of FairFuelUK, condemned the results as "pure corporate greed," stating that drivers in the UK had been "fleeced by sky-high petrol and diesel prices since the conflict in Iran began."
Oil fat cats are laughing all the way to the bank as hardworking families, van drivers and hauliers get clobbered at the pumps.
Katherine May, Oxfam Scotland advocacy adviser, said:
The Prime Minister says he wants to ease pressure on household budgets. If he's serious about that, he should start by making the biggest and richest polluters pay their fair share.
Simon Francis, coordinator of the End Fuel Poverty Coalition, noted:
Shell makes more profit in a single minute than most people in this country earn in a year. As wildfires rage and temperatures climb, the very fuels heating the planet are also heating company profits, while households pay the price on their bills.
North Sea drilling debate intensifies
The results come amid a heated debate over North Sea oil and gas development, with Prime Minister Andy Burnham facing pressure from both the fossil fuel industry, which wants expanded drilling rights, and climate campaigners seeking to block new projects.
Shell has argued it could supply 10% of the UK's natural gas needs if it receives approval for proposed North Sea oil fields. However, environmental groups warn this approach would lock households into further cycles of price volatility.
Danny Gross of Friends of the Earth said:
With extreme heatwaves and wildfires hitting the UK and ravaging Europe, it's outrageous that Shell is making huge profits while continuing to fuel the climate crisis. These profits have been built on an energy crisis that's left households across the country struggling with high energy bills at home and expensive fuel at the pumps.
Green Party leader Zack Polanski called the profits "obscene," adding:
While the cost of living crisis continues to spiral, with food and fuel prices soaring, so do global oil and gas companies' profits.
Company response and shareholder returns
Shell chief executive Wael Sawan defended the results, stating:
Shell's operational performance enabled very strong results during another quarter of severe disruption in global energy markets, as we worked hard to provide critical energy supplies and products to our customers.
The company announced $3 billion in new share buybacks in addition to $1.2 billion previously announced, extending its streak of at least $3 billion in quarterly buybacks to 19 consecutive quarters. Shell also reduced its net debt from $52.6 billion to $41.75 billion.
However, the conflict has not been without costs for Shell. War-related disruption has forced the company to idle or curtail operations at its Qatari holdings, including the Pearl gas-to-liquids plant and QatarEnergy LNG facility, resulting in the loss of approximately 10% of total production.
The exceptional quarterly performance places Shell's results second only to the £11.47 billion ($11.47 billion) the company earned in the second quarter of 2022, during the energy price spike that followed Russia's invasion of Ukraine.
