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BP profits reach four-year high amid Iran war and rising oil prices

BP reported a profit of $5.73bn between April and June, more than double the previous year, driven by increased oil prices due to the Iran war. The company also confirmed plans to sell its US renewable natural gas business.

  • BP's profit for April-June was $5.73bn, a four-year high.
  • Brent crude averaged $103.85 a barrel in the April-to-June quarter, up from $67.88.
  • BP plans to sell its US renewable natural gas business, Archaea.

BP's profits have surged to a four-year high, reaching $5.73bn (£4.26bn) between April and June. This figure more than doubles the $2.35bn reported in the same period last year and marks the highest quarterly profit since the start of the Russia-Ukraine war in 2022.

The increase in profits is attributed to a jump in crude oil prices following the outbreak of the Iran war earlier this year. This conflict led to significant disruption in global oil and gas supplies through the Strait of Hormuz. Brent crude, the global benchmark, averaged $103.85 a barrel in the April-to-June quarter, compared to $67.88 in the same period last year.

Despite the rise in profits, BP chief executive Meg O'Neill stated the company was not reaching its full potential. BP, which employs nearly 14,000 people in the UK, confirmed plans to move away from clean energy, including the sale of its US renewable natural gas business, Archaea. O'Neill described this as part of a strategy to prioritise "value, not sentiment or history."

Last week, BP also announced its intention to sell its North Sea business, a move that would end 60 years of production in the region for the company. Environmental groups have criticised BP, with Angharad Hopkinson from Greenpeace stating that "corporate gains have become entirely divorced from the public good."

Why this matters: The rise in crude oil prices, linked to the Iran war, has pushed up petrol and diesel prices and domestic energy costs globally.

What this means for you: Higher crude oil prices have contributed to increased petrol and diesel prices, as well as domestic energy costs.

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