BP Profit More Than Doubles as Soaring Oil Prices Boost Earnings Amid Middle East Tensions

BP reported an underlying replacement cost profit of $5.7 billion for the second quarter, comfortably beating analysts’ expectations of $5 billion. The figure more than doubled from $2.35 billion a year earlier and increased significantly from $3.2 billion in the first quarter of 2026.

The earnings surge was largely driven by higher global oil and gas prices as geopolitical tensions between the United States and Iran continued to disrupt energy markets. Ongoing hostilities have severely impacted shipping through the Strait of Hormuz, a strategic route that normally handles around one-fifth of the world's oil and natural gas supplies.

The strong results come as U.S. President Donald Trump criticized major oil companies, including Exxon Mobil and Chevron, for profiting from higher fuel prices during the conflict. Trump argued that energy companies were "making too much money" from supply shortages and reiterated his call for lower gasoline prices for American consumers.

Responding to the criticism, BP CEO Meg O’Neill said the company operates within global commodity markets and cannot directly control oil prices. She emphasized that BP remains focused on maximizing operational reliability across its upstream production and refining assets to help ensure stable fuel supplies. The company has also adjusted refinery operations to prioritize products currently in highest demand, including diesel and jet fuel.

BP continued to reward shareholders by increasing its quarterly dividend by 4% to 8.66 cents per ordinary share. Operating cash flow reached $10.9 billion, while net debt declined to $22.25 billion from $25.3 billion at the end of the previous quarter, reflecting ongoing improvements in the company's financial position.

Analysts at Citi noted that BP's sharp reduction in net debt means the company is no longer the most highly leveraged among international oil majors. They also said the decision to suspend share buybacks earlier this year, combined with the dividend increase, highlights BP's improving financial strength.

The company also continues to simplify its business portfolio. BP announced it has launched a process to explore the potential sale of Archaea Energy, the U.S. biogas company it acquired for $4.1 billion in 2022 as part of its now-abandoned renewable energy expansion strategy. The move reflects BP's renewed focus on its core oil and gas business.

Earlier this week, BP also completed the sale of its Gelsenkirchen refinery and related assets in Germany to Klesch Group. The transaction is expected to reduce the company's annual operating expenses by approximately $1 billion, supporting its broader strategy of lowering costs and reducing debt.

Despite the strong financial performance, BP is still working to stabilize its leadership after several executive changes. The company replaced Chairman Albert Manifold in May over governance concerns, although Manifold has publicly disputed the allegations.

BP shares traded modestly higher following the earnings release and have gained more than 27% year-to-date. While elevated energy prices continue to provide a significant earnings tailwind, the company's outlook will remain closely tied to developments in the Middle East, global energy demand, and broader macroeconomic conditions.