BP hits headlines: record profits surge on trading and geopolitics, potential windfall tax talk; UK energy policy and leadership shifts in play. Big oil, still under scrutiny.
On March 11-12, two oil tankers—the Safesea Vishnu and Zefyros—were attacked in Iraqi waters near Khor Al Zubair, resulting in one crew death and multiple rescues. Iran's Revolutionary Guards claimed responsibility amid ongoing US-Israeli conflict with Iran. These attacks, part of at least 16 assaults on commercial vessels in the Persian Gulf since late February, have disrupted shipping through the Strait of Hormuz, threatening global oil supply and prices.
Energy bills in Great Britain are forecast to increase significantly from July, with Cornwall Insight predicting a rise to nearly £1,929 annually due to soaring wholesale prices driven by Middle East conflicts. The government is considering targeted support as the current price cap remains until June.
British businesses face sharp energy bill increases from April, with electricity costs rising by 10-30% and gas by 25-80%. No price caps protect firms, and market volatility complicates renewals. The government offers limited support, leaving companies to absorb the costs.
BP has upgraded its first quarter oil trading guidance following a weak final quarter in 2025. The company reports increased volatility due to ongoing conflicts in the Middle East, with oil prices surging over 60% this year. BP expects flat upstream production and higher net debt, with results to be released on April 28.
Oil and gas companies have benefited from the Iran conflict, with profits reaching hundreds of billions of dollars. Major firms like Saudi Aramco, ExxonMobil, Shell, and Russian companies are experiencing record windfalls as oil prices stay high. Governments face pressure to impose windfall taxes to ease public burdens.
European finance ministers and lawmakers are pressing for windfall taxes on oil and gas profits spurred by the Iran conflict and Gulf tensions. BP and TotalEnergies have reported strong Q1 earnings, renewing calls to redirect excess profits to consumers and energy transition efforts. The debate echoes past attempts and faces questions about revenue performance and corporate behavior.
Global oil majors are posting higher first‑quarter profits as supply disruptions, including the Strait of Hormuz tension and related price spikes, bolster trading and refining margins. Shell and BP report earnings well above forecasts, while Aramco highlights a critical export artery from its east coast to the Red Sea, helping cushion markets.