BP's profits more than doubled in the first quarter of 2026, driven by surging oil prices since the U.S.-Israeli war against Iran began on Feb. 28 and disrupted one of the world's most critical energy chokepoints.
The company posted underlying replacement cost profit of $3.2 billion for the first three months of the year, well above the $2.63 billion analysts had forecast according to an LSEG-compiled consensus. That compares to $1.38 billion in net profit over the same period a year ago and $1.54 billion in the final quarter of 2025.
CEO Meg O'Neill said in a statement that the results reflect "exceptional" oil trading contributions and stronger midstream performance. "Overall, our business continues to run well. This was another quarter of strong operational and financial delivery, and we made further progress towards our 2027 targets," she said.
BP shares rose 3% in early London trading on Tuesday. The stock has advanced more than 32% this year, making BP the second-best performer among the top five oil supermajors, trailing only France's TotalEnergies.
The backdrop to BP's strong quarter is an energy market under severe strain. The International Energy Agency has described disruption through the Strait of Hormuz as the biggest energy security threat in history. U.S. President Donald Trump convened his national security team Monday to discuss a proposal from Iran to reopen the strait if the U.S. lifts its naval blockade and the war ends. White House press secretary Karoline Leavitt confirmed the discussions, though Trump has previously vowed not to lift the blockade until a deal is "100% complete." The proposal would defer negotiations over Iran's nuclear program to a later date, according to Axios and the Associated Press.
Oil prices edged higher overnight as uncertainty about the war's outcome persisted. European stocks were slightly lower Tuesday morning as investors watched for Washington's response, with the pan-European Stoxx 600 down 0.1%, Germany's DAX off 0.2%, and France's CAC 40 down 0.3%.
BP's balance sheet showed some strain alongside the profit surge. Net debt rose to $25.3 billion at the end of the first quarter, up from $22.18 billion at the end of 2025. The company is targeting a reduction to between $14 billion and $18 billion by the end of 2027. BP reaffirmed its 2026 capital expenditure guidance at $13 billion to $13.5 billion and said it expects divestment and other proceeds of $9 billion to $10 billion through the year.
Looking ahead, BP warned that reported upstream production is expected to fall in the second quarter, citing seasonal maintenance work and ongoing Middle East disruptions.
The strong financial results came just days after a shareholder rebellion at BP's annual general meeting. Investors withheld majority approval on two motions that would have allowed online-only AGMs and retired two company-specific climate disclosure requirements. Shareholders also delivered weaker-than-typical support for BP Chair Albert Manifold and backed a separate motion calling on the company to justify its capital discipline on oil and gas investments.
