Oil Companies' Profits Way Up Amid Worldwide Gas Price Shock

As consumers and businesses around the world worry about high prices caused by the Iran war's gas-price shock, big oil companies such as Shell and BP are recording spikes in profits. Critics are now accusing those companies of profiteering.   

Recent earnings reports show profits for Shell, BP, and other big oil companies more than doubled during the first three months of 2026 compared to late 2025. Shell posted $6.92 billion in profits. That's up from $3.26 billion in 2025’s last quarter. BP posted $3.2 billion in earnings. That's up from $1.38 billion.  

"Their business interest is to extract as many dollars out of a barrel of oil as possible," said Kelly Mitchell. She is director of Fieldnotes. It's an oil industry watchdog group. "The folks on the other side of the equation are Americans who are just trying to fill up their gas tank and get to work." 

Oil industry experts say it’s not that simple. Gas prices, they say, aren't set by companies. They are set by a range of factors including world conflicts, refinery capacity, and global supply and demand.    

When something becomes more scarce, like tickets to a Taylor Swift concert, prices spike. The Middle East war has shut down the Strait of Hormuz. That has blocked the transport of 25% of the world’s seaborne oil. The result has been an increase in the price of oil. It has run above $100 per barrel during much of the war. Before the US and Israel launched air strikes on Iran on February 28, the price was about $70 per barrel.     

Consumer advocates, though, say the oil industry should share its profits with consumers. They argue the companies could do so through rebates or discounts instead of maximizing profits. Some say governments should impose a “windfall tax” on oil companies to curb profits.   

Reflect: Why do you think some industries are able to bring in record profits during times of global distress or disaster?

Photo of oil tanker in the Strait of Hormuz from Reuters.