Shell profits double as oil prices rise due to Iran war

Shell’s profits for the second quarter of the year have more than doubled after the Iran war pushed up oil prices.

The oil giant’s profits for the April-to-June period reached $9.84bn (£7.37bn) – up from $4.26bn at the same point last year.

The price of oil has soared since the outbreak of the US-Israel war with Iran due to major disruption to global supplies of oil and liquid natural gas (LNG) through the Strait of Hormuz.

Shell chief executive Wael Sawan said the company’s “operational performance enabled very strong results during another quarter of severe disruption in global energy markets”.

Together with its profits of $6.92bn for the first three months of the year it means Shell has seen a 70% surge in first-half earnings.

Shell and other energy giants such as BP and Norway’s Equinor have seen bumper profits this year, partly down to trading on oil price swings.

Before the conflict began, the price of Brent crude, the global benchmark for oil prices, was around $73 a barrel.

Since then, it has peaked above $120 but also fallen back below $100 as speculation has swirled over when the Strait of Hormuz will reopen.

These big movements in the oil price can widen the gap between buying and selling prices which typically enables traders to make bigger profits.