Oil giants face backlash as Iran conflict fuels multi-billion-pound profits

Oil giants face backlash as Iran conflict fuels multi-billion-pound profits - Left Foot Forward: Leading the UK's progressive debate

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Oil giants are facing renewed criticism after reporting billions of pounds in profits, with campaigners accusing the industry of profiting from conflict while the climate crisis intensifies.

Both BP and Shell have posted bumper earnings following a rise in global oil prices triggered by disruption to supplies during the Iran conflict.

BP reported quarterly profits of £4.2bn, up from £1.7bn a year earlier and well ahead of analysts’ expectations. The results follow another strong quarter, underlining how geopolitical instability has translated into soaring returns for the company.

Much of the increase has been linked to the disruption of shipping through the Strait of Hormuz, a route that normally carries around a fifth of the world’s oil and liquefied natural gas. As attacks disrupted traffic through the waterway, benchmark crude prices climbed sharply, boosting revenues for the world’s largest fossil fuel producers.

The latest figures cover the first full quarter of the Iran conflict, whereas previous earnings reflected only the early stages of the crisis.

The financial windfall comes as the impacts of climate change continue to intensify.

Across Europe, deadly heatwaves and wildfires have swept through several countries, while England and Wales recorded their driest July on record, with around half of England officially in drought.

Despite these increasingly severe climate impacts, BP has reaffirmed its commitment to expanding fossil fuel production, reversing previous plans to reduce oil and gas output.

"Amassing $5.7 billion (£4.24bn) in profits shows how corporate gains have become entirely divorced from the public good – ordinary people are feeling the heat when it should be the polluters paying the price," said Greenpeace political campaigner Angharad Hopkinson.

BP is far from alone in benefiting from the conflict in the Middle Wast

The world’s largest oil producer, Saudi Aramco, announced a 44 percent increase in profits, while Shell recently reported a 70% surge in half-year profits to £12.6bn, saying the effects of the US-Iran conflict had contributed to its strongest quarterly performance in four years.

Responding to Shell’s results, Greenpeace campaigner Rudy Schulkind urged more progress.

"We’re running out of words to describe the obscenity of these numbers," he said.

He added that the profits came as "Europe is engulfed by apocalyptic wildfires, communities across Asia are reeling from devastating floods, and the UK battles through drought and yet more dangerous heat."

Environmental groups say the latest profits strengthen the case for governments to increase taxes on extraordinary fossil fuel earnings and accelerate investment in clean energy.

Friends of the Earth energy campaigner Danny Gross called for Andy Burnham to oppose the proposed Rosebank oil development and instead back policies that would expand renewable energy.

"Andy Burnham must reject the climate-harming Rosebank oil project.

"Instead, he should strengthen the windfall tax on gas and oil companies and use the proceeds to speed up the transition to a cleaner, cheaper energy system that boosts energy security and protects both the planet and people’s pockets."

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Oil giants face backlash as Iran conflict fuels multi-billion-pound profits

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