BP Profit More Than Doubles as Iran Conflict Drives Oil Price Surge

LONDON: British energy giant BP reported a sharp increase in second-quarter earnings after higher global oil and gas prices, fuelled by the Iran conflict and disruptions to energy supplies, significantly boosted its financial performance.

BP announced an underlying replacement cost profit of $5.73 billion for the second quarter of 2026, more than doubling from $2.35 billion a year earlier and exceeding market expectations. The company attributed the strong performance to elevated oil prices, robust trading operations and improved refining margins following supply disruptions linked to the conflict in the Middle East.

Chief Executive Meg O’Neill said the company’s performance reflected the resilience of its operations during a period of exceptional market volatility. She also reaffirmed BP’s strategic focus on strengthening its balance sheet, simplifying its portfolio and improving operational efficiency while continuing to deliver value to shareholders.

As part of its ongoing restructuring, BP plans to divest several assets, including its US biogas business, while reducing investment in some low-carbon ventures. The company has also completed the sale of its Gelsenkirchen refinery in Germany and continues to progress with the sale of its Austrian retail operations and UK North Sea business.

Despite the strong earnings, BP warned that upstream production was slightly lower than a year earlier due to operational challenges. The company nevertheless raised its quarterly dividend by four percent and reaffirmed its target of completing $20 billion in asset sales by 2027 as part of efforts to reduce debt and strengthen long-term financial performance.

The company’s results came as oil majors worldwide benefited from a surge in crude prices following disruptions to global energy supplies caused by the Iran conflict. Brent crude climbed sharply during the crisis, providing a significant earnings boost to major producers, although prices have eased somewhat amid renewed diplomatic efforts in the region.