Oil giants accused of making more than £26billion worth of 'war profits'

Oil giants have raked in the equivalent of £102 in "war profits" for every UK household in the first three months of this year, research suggests. Analysis by the End Fuel Poverty Coalition found energy firms generated £3billion worth of UK profits since January, a big chunk following a surge in oil prices after the start of the Iran war in late February. Globally, they have made £26.2billion. It came as industry heavyweight Shell was slammed after posting profits of nearly £5.1billion in the first three months of this year on the back of the Iran war. The firm is among producers to benefit from a surge in wholesale oil and gas prices. Shell’s profit was more than double the £2.4billion it made in the final three months of 2025, and up from £4.1billion a year ago. Simon Francis, from the End Fuel Poverty Coalition, said: “Around a quarter of every energy bill is taken in profit by a range of firms involved in the industry and that figure could well grow thanks to the war profits still being generated by the energy industry. “Not only do these firms profit off the back of a war which has killed thousands of civilians, but the profits are also built on the backs of financial suffering in UK households. It can’t be right that while the public see their energy bills increase, energy firms make billions and employ rafts of accountants to maximise their profits and lobbyists to campaign against the windfall tax. “The only winners from the conflict with Iran appear to be the oil and gas giants who control the prices we pay. The sooner we get off the fossil fuel price rollercoaster through increased energy efficiency of buildings and more renewables, the better.” The clearest sign many UK households have of the economic fall-out from the Middle East conflict has been the price of petrol and diesel. Motoring group the RAC said petrol now averages 157.56p a litre nationally - the highest since April 20 - and up from 132.83p a litre before the Iran war started. Diesel has jumped from 142.38p to 188.07p a litre. RAC head of policy Simon Williams said: “The outlook for the first couple of weeks of May is ominous. Wholesale petrol and diesel prices jumped by around 5p a litre last week, and are now at their highest since the war began. This hasn’t yet been reflected at the pumps - petrol is up by just a fraction of a penny so far this month, and diesel has continued to slowly drift downwards. But if oil prices, and in turn wholesale fuel prices, remain at elevated levels over the coming weeks then future price rises at forecourts is all but inevitable.” Meanwhile, industry experts Cornwall Insight has forecast that regulator Ofgem’s energy price cap will rise by an average £201 a year from the start of July. Shell has stakes in seven refineries, which turn crude oil in products such as diesel and jet fuel, where profits jumped to around £1.5billion. The End Fuel Poverty Coalition’s profit tracker takes in 30 energy firms. The latest figures have been compiled following trading updates by a host of companies in recent weeks as the conflict with Iran and the closure of the Strait of Hormuz has sent wholesale oil and gas prices soaring. In a new poll from Survation, 74% of the public felt it was morally wrong for oil and gas companies to profit from the energy crisis caused by the Iran war. Jan Shortt, general secretary of the National Pensioners Convention, said: “It is an appalling situation when energy companies profit from a humanitarian crisis and the public pay the price of ever increasing household bills. It is time for a real and urgent push to engage with renewable energy and sustainable energy rather than fossil fuels. “We are concerned that increasing energy bills will mean that those who need heat even in the warmer weather due to their health conditions will be forced to cut down their consumption. The billions going into the coffers of energy companies like Shell and BP should be used to offset the increase in household energy bills so that hot food and heating homes when necessary doesn’t mean going into debt.” Shell said one reason its profits had more than doubled on the previous three months was that the end of the year tends to be quieter for seasonable reasons, while the previous quarter was also depressed by significant deferred tax payments. The company also pointed to the importance of its dividends, with around £7billion paid in 2025, and about 9% of the total declared by FTSE 100 companies. Around 20% of its shareholders are UK based, the firm added. Rival BP also came under attack last week after it reported far better than expected results, with first quarter profits more than doubling to £2.35billion. Brent crude oil, jet fuel and gas prices have all surged after production was hit by attacks in the region, and the important Strait of Hormuz shipping corridor remains heavily disrupted. The price of crude reached $126 a barrel last week, the highest level in four years, before falling back amid hopes of a peace deal, but still remains close to $100 a barrel.