Shell reported a 19% rise in quarterly net profit as higher oil and gas prices, driven by escalating geopolitical tensions in the Middle East, boosted earnings beyond analyst expectations. The energy giant posted adjusted earnings of about $6.9 billion for the first quarter of 2026, up from $5.58 billion a year earlier, as reported by Reuters.
The earnings surge was supported by strong oil trading performance, higher refining margins, and elevated crude prices following disruptions linked to the Iran conflict. Brent crude prices climbed sharply during the quarter, increasing revenue across major oil producers and traders, according to The Guardian.
Despite the stronger profits, Shell said oil and gas production declined during the quarter due to operational disruptions caused by the conflict, including damage affecting Qatar-linked gas volumes. The company also reduced its quarterly share buyback programme to $3 billion from $3.5 billion, signalling caution amid continued market volatility, as highlighted by The Wall Street Journal.
The results have intensified debate around so-called “windfall profits” earned by energy companies during periods of geopolitical crisis. Climate and consumer advocacy groups criticised the gains, arguing that soaring energy costs are placing pressure on households and businesses globally, as noted by The Guardian.
