BP announced Tuesday that its first-quarter profits surged to $3.2 billion, more than double the same period last year, as the escalating conflict with Iran continues to roil global oil markets. The British energy giant's earnings handily beat analyst expectations, marking its strongest quarterly performance in three years and the first tangible sign of a turnaround under new CEO Meg O'Neill.
O'Neill, who took the helm in April, is the fifth person to lead BP in six years. Her tenure begins amid extreme volatility in the Middle East, where the closure of the Strait of Hormuz has choked off a fifth of the world's daily oil shipments. A U.S. naval blockade and Iranian threats have effectively halted most traffic through the critical chokepoint, sending crude prices sharply higher.
“We are heading in the right direction, strengthening the balance sheet and continuing to accelerate delivery,” O'Neill said in a statement. “Now, we have to capitalize on the opportunity that exists across our portfolio, simplifying how we work, unlocking growth and driving improved returns.” She added that the goal is to make BP “a simpler, stronger, more valuable company.”
The quarterly earnings represent a sharp reversal from the $3.4 billion loss BP posted in the fourth quarter of 2025. Company officials credited a team of oil traders who leveraged rapid fluctuations in fuel prices to generate profits amid the market chaos. BP also noted that higher production in the Gulf of Mexico and strong performance from its U.S. onshore business, BPX Energy, helped offset disruptions in the Middle East.
BP has significant operations in the region, including subsidiaries in Abu Dhabi and Oman, as well as equity-accounted entities in Iraq. The company reported price deviations in the Middle East driven by crude differentials and freight costs, and said it continues to “closely monitor the situation.” The full impact, BP warned, “will be determined by the extent and duration of the current market conditions.”
The conflict has already driven U.S. gas prices to four-year highs, a trend that is increasingly becoming a political liability for the Trump administration. A recent poll found that 77% of voters hold President Trump accountable for the surging prices at the pump. The White House has extended the Jones Act waiver to ease supply bottlenecks, but the IEA has warned that global energy security is at a historic breaking point.
Despite the profit surge, BP's net debt rose by $3.3 billion from the previous quarter. The company reiterated its primary target of reducing net debt to between $14 billion and $18 billion by the end of 2027, a plan centered on boosting oil-and-gas production and cutting costs associated with renewable energy investments.
