Shell Plc on Thursday reported its highest quarterly profit in four years, driven by soaring oil and gas prices linked to the Iran war. The energy giant said its second-quarter profit jumped on the back of an oil-refining boom and another robust period for energy trading, as the conflict disrupted global markets.
The bumper result comes as energy majors benefit from a sharp rise in fossil fuel prices following the outbreak of the war. Shell's performance underscores how geopolitical instability can boost revenues for oil and gas companies, even as they face pressure to transition to cleaner energy.
While specific figures were not disclosed in the reports, both CNBC and Bloomberg noted the surge in profit was directly tied to the conflict in Iran. The war has upended supply chains and sent crude prices higher, benefiting producers.
Shell's strong earnings follow a trend among large oil companies, which have seen profits swell in recent quarters due to price volatility. The company did not comment on future expectations, but analysts expect continued gains if the war prolongs.
The second-quarter results mark a turnaround from earlier years when the pandemic weighed on demand. However, critics argue that such windfall profits come at the cost of global stability and climate goals.