BP Posts $5.7bn Quarterly Profit, Highest Since 2022, Boosted by Iran War Oil Prices

BP has reported its highest quarterly profit since 2022, posting underlying replacement-cost earnings of $5.7 billion in the second quarter of 2026. The result represents a roughly 78 percent increase compared to the previous quarter and was driven primarily by surging energy prices linked to the ongoing conflict in the Middle East.

Iran War Fuels Oil Price Surge

The sharp jump in BP's earnings comes as tensions between the United States and Iran have severely disrupted global energy markets. Hostilities have obstructed shipping routes through the Strait of Hormuz, a critical maritime chokepoint that handles approximately one-fifth of the world's oil and natural gas supplies. The disruption sent crude oil prices sharply higher, benefiting BP's refining and trading operations substantially.

Operating cash flow reached $10.9 billion in Q2, after accounting for a $1 billion adjusted working capital build, indicating strong underlying operational performance across BP's global portfolio.

Environmental and Political Backlash

The results drew immediate criticism from environmental groups, who accused BP of profiteering from a geopolitical crisis. Donald Trump, speaking publicly on the earnings announcement, criticised what he called Big Oil's excessive gains, declaring that energy companies were making "too much money" at the expense of ordinary consumers.

Climate campaigners argue that BP and other major oil producers are using conflict-driven price spikes to delay their pledged transitions toward cleaner energy, channelling windfall profits into further oil and gas extraction rather than renewable projects.

Strategic Restructuring Under New CEO

Despite the strong results, BP's chief executive noted mixed performance across certain business units. Under new CEO Meg O'Neill, BP announced plans to divest its US biogas business and other non-core assets as part of a portfolio simplification strategy. The company is seeking to sharpen its focus on high-margin operations as energy markets remain volatile.

BP also raised its dividend to shareholders following the results, citing confidence in near-term cash generation despite broader macroeconomic and geopolitical uncertainties. The Q2 performance is the latest sign that the Iran war's impact on global commodity markets continues to deliver outsized gains for major integrated energy producers.