Shell profits jump to $6.92 billion amid Iran war-driven volatility

War-driven oil volatility padded Shell’s profits in the first quarter, even as households and businesses faced the higher fuel and transport costs that usually follow a surge in crude prices. The energy giant said adjusted earnings rose to $6.92 billion, up from $5.58 billion a year earlier and above the $6.36 billion analysts expected in a company poll.

The profit jump came as the Iran war pushed oil and gas prices higher and jolted trading conditions across the market. Shell said its trading business benefited from the turbulence, with oil trading results “significantly higher” than the previous quarter in its April 8 update. Refining margins also climbed as fuel prices soared, reinforcing the way conflict can widen the gap between what producers earn and what consumers pay at the pump.

Even so, the quarter was not a clean win. Shell said oil and gas output fell 4% from the previous quarter, reflecting disruption in the Middle East, including damage to its Qatari Pearl gas plant. Repairs there could take about a year, a reminder that the same geopolitical shocks that lift margins can also hit physical assets and production. Shell’s gearing ratio rose to 23.2% from 20.7% at the end of 2025, showing a modest increase in balance-sheet pressure.

The company also trimmed the pace of capital returning to shareholders, cutting its quarterly share buyback to $3 billion from $3.5 billion. That reduction came shortly after Shell announced a $16.4 billion agreement to buy Canadian energy company ARC Resources, a deal that adds another layer of strategic spending just as the group navigates volatile markets and higher leverage.

The results have already drawn political and environmental scrutiny. Climate campaigners attacked Shell over what they called windfall profits from the Iran war, sharpening the debate over whether energy majors should be rewarded when conflict drives prices higher. For Shell, the quarter underscored a familiar and politically fraught dynamic: geopolitical shock lifts earnings, investors collect cash, and the broader economy absorbs the cost.